Russia Tries In Vain To Stop Western Firms From Fleeing

Russian President Vladimir Putin is trying to stem the flow of Western businesses fleeing the country over his decision to wage war on Ukraine, Mark Thompson and Vasco Cotovio reported for CNN Business.

Photo Insert: Exxon Mobil pledged to leave Sakhalin-1, its last remaining oil-and-gas project in Russia, and not to invest in new developments in the oil-rich nation.

Capital controls designed to stop the exodus were announced by Russian Prime Minister Mikhail Mishustin, state news agencies TASS and RIA reported on Tuesday.

Western companies were taking decisions because of "political pressure," he said, and they would be prevented from selling Russian assets until that pressure subsides.

"To enable businesses to make informed decisions, a draft presidential decree has been prepared to introduce temporary restrictions on exiting Russian assets," Mishustin was quoted as saying.

"We expect that those who have invested in our country will be able to continue working here."

Oil giant BP (BP) is one of the most prominent companies to abandon Russia since its troops invaded Ukraine last week. It said Sunday it was planning to exit its 19.75% stake in Russia's biggest oil company, Rosneft, and their joint ventures — amounting to one of the biggest foreign investments in Russia. Others have since followed suit, including Shell and Norway's Equinor.

On Tuesday, Exxon Mobil pledged to leave its last remaining oil-and-gas project in Russia, and not to invest in new developments in the oil-rich nation. The Sakhalin-1 venture is "one of the largest single international direct investments in Russia," according to the project's website.

That came soon after France's Total Energies said it would not provide new capital for Russian projects and was assessing the impact of swinging Western sanctions on its existing investments in the country.

Visa and Mastercard are also working to enforce sanctions against Russia. Both credit card providers said this week that they were taking steps to comply with measures as they evolved, Michelle Toh and Matt Egan also reported for CNN Business.

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