# Russia bans Western investors from selling banking, key energy stakes Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-05 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Russia Bans Investors from Key Projects Amid Stand-off with Meta Description: Russia has barred investors from certain nations from selling shares in key energy projects and banks as sanctions escalate. Read more at the link. URL: https://financedigest.com/russia-bans-western-investors-from-selling-banking-key-energy-stakeshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-05t125158z2lynxmpei740l2rtroptp4russia-metals-1736815501738-compressed.jpg) (This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine) MOSCOW (Reuters) – Russia has banned investors from so-called unfriendly countries from selling shares in key energy projects and banks until the end of the year, stepping up pressure in the sanctions stand-off with the West. Western countries and allies, including Japan, have piled financial restrictions on Russia since it sent troops into Ukraine in late February. Moscow retaliated with obstacles for [Western businesses and their allies leaving](https://www.financedigest.com/russias-ochakovo-ups-soft-drink-bottling-capacity-as-western-rivals-leave.html "Russia’s Ochakovo ups soft drink bottling capacity as Western rivals leave") Russia, and in some cases seized their assets. The decree http://kremlin.ru/acts/news/69117, signed by President Vladimir Putin and published on Friday, immediately bans [investors from countries which supported sanctions on Russia](https://www.financedigest.com/oil-markets-steady-as-investors-weigh-banking-crisis-russia.html "Oil markets steady as investors weigh banking crisis, Russia") from selling their assets in production sharing agreements (PSA), banks, strategic entities, companies producing energy equipment, as well as in other projects, from oil and gas production to coal and nickel. Putin could issue a special waiver in certain cases for the deals to go ahead, the decree said, and the government and the [central bank](https://www.financedigest.com/stock-pickers-reckon-its-time-to-move-on-from-central-banks.html "Stock pickers reckon it’s time to move on from central banks") should prepare a list of banks for the Kremlin’s approval. The decree mentioned no investors by name. TAKING THE HIT The ban covers almost all big financial and [energy projects where foreign investors](https://www.financedigest.com/ges-investors-seek-solutions-to-renewable-energy-supply-chain-challenges.html "GE’s investors seek solutions to renewable energy, supply chain challenges") still have stakes, including the Sakhalin-1 oil and gas project. On Thursday, Russian state [oil champion Rosneft blamed ExxonMobil for falling](https://www.financedigest.com/oil-falls-on-demand-worry-as-fed-make-or-break-moment-approaches.html "Oil falls on demand worry as Fed ‘make or break moment’ approaches") output at the Sakhalin-1 group of fields, after the U.S. energy [major said it was in the process of transferring its 30% stake](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") “to another party. Separately, a [government decree signed](https://www.financedigest.com/shyft-signs-mou-with-the-government-of-bermuda-pledges-to-invest-10m.html "Shyft Signs Mou With The Government Of Bermuda, Pledges To Invest m") on Aug. 2 gave foreign investors at the Sakhalin-2 liquefied natural gas (LNG) project – Royal [Dutch](https://www.financedigest.com/amazon-grants-1-5-million-euros-to-dutch-seaweed-farm-project.html "Amazon grants 1.5 million euros to Dutch seaweed farm project") Shell and Japanese trading houses Mitsui & Co and Mitsubishi Corp – a month to claim their stakes in a new entity which will replace the existing project. The new decree does not cover the Sakhalin-2 project, it said. Shell was looking for options to withdraw from the project while [Japan’s government reiterated its wish for the Japanese companies to maintain](https://www.financedigest.com/japan-insurers-to-maintain-cover-for-lng-vessels-in-russian-waters.html "Japan insurers to maintain cover for LNG vessels in Russian waters") their stakes there. [Italy’s UniCredit](https://www.financedigest.com/unicredit-sets-out-8-billion-aid-package-for-italy-clients-hit-by-surging-prices.html "UniCredit sets out billion aid package for Italy clients hit by surging prices") and Intesa, U.S. [group Citi and Austria’s Raiffeisen continue](https://www.financedigest.com/hotel-group-accor-continues-post-covid-recovery-after-a-gorgeous-summer.html "Hotel group Accor continues post-COVID recovery after a ‘gorgeous’ summer") to search for options to exit Russia, while others such as Societe Generale and HSBC have found a way out. Citigroup declined to comment on Friday, but on Thursday, the bank said in a filing it will continue to reduce its [operations and exposures to Russia](https://www.financedigest.com/kfc-franchisees-in-russia-ask-govt-to-halt-sale-of-stores-to-local-operator-ria.html "KFC franchisees in Russia ask govt to halt sale of stores to local operator – RIA"). [Citigroup has ceased soliciting any new business](https://www.financedigest.com/citigroup-says-will-close-russian-consumer-commercial-business.html "Citigroup says will close Russian consumer, commercial business") or new clients in Russia, it said. Citigroup disclosed $8.4 [billion in Russia exposure as of June 30, compared with $7.9 billion at the end](https://www.financedigest.com/td-other-banks-reach-1-35-billion-settlements-to-end-stanford-litigation.html "TD, other banks reach .35 billion settlements to end Stanford litigation") of the first quarter. The exposure rose due to a rise in the value of the rouble. [(Reporting by Reuters; Editing by Mark Potter and Frank Jack Daniel)](https://www.financedigest.com/indonesia-to-tighten-used-shoe-import-controls-after-reuters-report.html "Indonesia to tighten used shoe import controls after Reuters report") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---