Russia plans to seize assets of western companies that pull out
Russia has drawn up plans to seize the assets of western companies leaving the country as the Kremlin pushes back against sweeping sanctions and the exodus of international businesses since its invasion of Ukraine.
Announcing the move after a string of global firms said they would suspend operations in Russia this week, including McDonald’s, Coca-Cola and Pepsi, the country’s economic ministry said it could take temporary control of departing businesses where foreign ownership exceeds 25%.
Speaking in a video link with members of his government on Thursday, Vladimir Putin said the Kremlin could find legally viable ways to seize international firms. The government would push to “introduce external management and then transfer these enterprises to those who actually want to work,” Putin said. “There are enough legal and market instruments for this.”
Mikhail Mishustin, the Russian prime minister, said that while most businesses had temporarily suspended operations, the situation would be closely monitored and that steps to “introduce an external administration” could be used.
The move comes as western governments seek to impose maximum pressure on Putin after the invasion of Ukraine by announcing drastic restrictions on imports of Russian oil and gas on top of financial sanctions and asset freezes for prominent oligarchs.
On top of formal sanctions, major western businesses and high-profile brands have taken steps to either exit the country altogether or suspend operations in response to the invasion, including Starbucks and McDonald’s. Shell has announced plans to withdraw from Russian oil and gas, BP has said it will exit stakes in major projects, while Unilever has said it will stop imports and exports to the country.
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