The European Union has recommended to European companies to cease operations in Russia as soon as possible, as part of the measures included in the 15th sanctions package adopted by the EU Foreign Affairs Council. This decision seeks to protect European companies from the risks associated with doing business in the country.
Facilities for an orderly withdrawal
The sanctions package includes an exceptional extension of certain legal deadlines to allow European companies to close their operations in Russia in an orderly manner. These extensions, approved individually by Member States, aim to avoid legal complications that make the divestment process difficult.
“The extension of these exceptions is necessary so that European operators can exit the Russian market quickly and without major obstacles”says the European Council statement.
Exemptions from fines and management of frozen assets
Another notable measure exempts European companies from paying fines that Russian authorities could impose on them as a result of their withdrawal. In addition, the sanctions package introduces exemptions for certain regulatory rules related to the management of Russian assets frozen in central warehouses of EU countries. This will allow European financial institutions request authorization to carry out specific operations with these assets, in response to regulatory measures or retaliation by Russia.
