EBRD reduces Russia holdings by selling stake in Moscow Exchange -Forbes -October 23, 2023 at 04:28 am EDT

Oct 23 (Reuters) – The European Bank for Reconstruction
and Development (EBRD) has sold its 5.3% stake in
Moscow Exchange to IT company Softline,
Forbes Russia reported on Monday, citing two people familiar
with the matter.

The EBRD last year said it was working on exiting Russia as
quickly as possible after its board of governors voted to
suspend access for Russia and Belarus to its financing and other
resources in April 2022, in response to Moscow’s invasion of
Ukraine.

Forbes Russia reported that the EBRD had sold its stake in
Russia’s largest bourse to Softline at a discount of 60% and
made a 20% contribution of the sale price to Russia’s budget,
requirements imposed by Moscow.

The EBRD and Softline did not immediately respond to
requests for comment. Moscow Exchange said it never comments on
the actions of its shareholders.

Russia has steadily tightened exit requirements for
departing foreign companies, now demanding a 50% discount on any
sale and a contribution to the Russian budget of at least 10% of
the sale price, dubbed an “exit tax” by Washington. Executives
say navigating the rules is becoming harder.

Softline last year separated from its global partner, now
called NOVENTIQ. In September, Softline’s shares began trading
in Moscow after a direct listing.

The EBRD has not put new money to work in Russia since
Moscow annexed Crimea from Ukraine in 2014. The lender had also
introduced a moratorium on new investment in Belarus following
the country’s disputed 2020 election.
(Reporting by Alexander Marrow; Editing by Kirsten Donovan)