Brattle Experts Author Article on the Complexities of Valuing Russian Assets
Published by The Brattle Group
Following the commencement of the war in Ukraine, several countries have imposed sanctions on Russian individuals and entities. In turn, the Russian Federation has responded with countersanctions against companies from “unfriendly” countries – including the US, the UK, and several countries in the EU. These countersanctions include currency restrictions and capital controls limiting, or even eliminating, companies’ ability to repatriate dividends as they seek to exit Russia.
Several arbitration proceedings brought by investors have already ensued over the alleged expropriation or damage of assets by Russia, and – with billions of dollars of assets at stake – it is likely that such disputes could increase in the future.
In a recent article, Brattle experts discuss the issues involved in valuing foreign assets located in Russia, including accounting for the presence of countersanctions, country risk, exchange rates, as well as issues related to commodity and energy prices. The authors also share Brattle’s experience addressing such complexities.
