Russian Market Sees Emergence of Secondary Market for Foreign Assets

In Russia, a so-called secondary market for foreign assets is beginning to take shape — new owners of businesses purchased from departing foreigners are considering reselling them, according to lawyers and consultants from three Russian companies at the XIV Cbonds Bond Congress, as reported by RBC. There are already requests from clients who previously bought businesses from foreigners and realized they may not meet the Key Performance Indicators (KPIs) set during the deal with the foreigner, Vitaly Zhigulin, a partner at Kesarev Consulting, said during the congress session. Interest in resale deals has also been confirmed by Verba Legal. «We see interest in such deals — potential buyers of assets that were previously bought from foreigners are already coming to us», - said Alexander Rudyakov, a partner and head of the corporate law and M&A practice at RBC in the corridors of the congress. While this interest is currently isolated, Rudyakov believes that within a «couple of years», - investors who bought assets from foreigners will engage in resale deals for various reasons. The same forecast was given by Olga Yaskova, a partner at Kept. She noted that while there is no significant data on resale deals of assets purchased from foreigners, experience suggests that a secondary market for such assets will develop. Most of the other experts surveyed by RBC confirm that work on resale deals for assets purchased from foreigners has begun in the market. «Yes, we see the beginning of the formation of a secondary market for assets acquired from foreign players», - said Julia Zagornova, a partner at B1. Partner at Better Chance Bulat Zhambalnimbuev notes that there are individual assets «that are being and will be put up for resale», - but the main pool of such deals has not yet reached the market. «I am confident that these assets will reach the secondary market in the next few years, and the first deals with them will be in 202».



This emerging trend in the Russian market reflects a shifting landscape as new owners of businesses previously owned by foreigners seek to navigate the challenges of meeting performance targets set by the previous owners. The interest in resale deals indicates a potential opportunity for investors to capitalize on assets that may not have met the expectations of the initial buyers. As the secondary market for these assets begins to take shape, experts anticipate a gradual increase in resale transactions in the coming years. The development of this secondary market could provide a new avenue for investors to acquire and trade assets acquired from foreign players, adding a layer of complexity and opportunity to the Russian business landscape. With the potential for increased activity in resale deals, investors and businesses will need to carefully consider the implications and opportunities presented by this emerging trend in the market.