License to pay "exit tax" while leaving Russian market

The Office of Foreign Assets Control (OFAC) of the USA has clarified that the contribution to the Russian budget paid by foreigners from unfriendly countries making transactions with regard to shares and stocks of Russian legal entities, can be made only after obtaining a license.

The U.S. Treasury Department has reminded that the U.S. persons are prohibited from carrying out any direct and indirect transactions with the Russian Central Bank or the Ministry of Finance of Russia. Under this description also falls the so called “exit tax” (budget contribution in the amount of 5 to 10 percent of the assets value to be sold, established by the Russian Governmental Commission).

Thus, in order to pay it, U.S. companies and individuals will have to obtain a license, providing the OFAC with the information regarding the amount of the payment and the amount of taxes that would be paid to the Russian budget if the business continued in the Russian Federation. In addition, while requesting the license, one will have to assess how the company's exit from the Russian market would affect the employees and the Russian economy as a whole.

The OFAC promises to consider such requests on an expedited individual basis.