Russia is lifting restrictions on dividend payments for foreigners investing into the country’s economy, unwinding limits that were imposed shortly after the Kremlin began its war in Ukraine.
(Bloomberg) — Russia is lifting restrictions on dividend payments for foreigners investing into the country’s economy, unwinding limits that were imposed shortly after the Kremlin began its war in Ukraine.
Companies can now return profit to non-resident investors without restrictions, but the volume of those payments shouldn’t exceed the amount of the investment into Russia, the Finance Ministry said in a statement Wednesday. The previous limit on dividend payments was not more than 50% of the previous year’s profit, the ministry said.
In order to receive dividends, non-residents must invest into the Russian economy starting from April 1, 2023, including into expanding production capacity and the development of new technologies.
Russia introduced restrictions on money transfers owed to investors or lenders from “unfriendly states” in March 2022, shortly after the invasion of Ukraine. Under a Kremlin decree, those payments had to be transfered to special bank accounts in rubles and were banned from moving abroad without special government permission. President Vladimir Putin in March proposed the possibility of easing those dividend payment rules.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.