President Russia Vladimir Putin will launch retaliation against western national sanctions by taking over assets company-companies leaving their land.
More than 50 world big companies withdrew from Russia after the military invasion of Ukraine. They closed shops, factories and suspended operations just a week after Russia invaded Ukrainian territory.
“We need to act decisively against companies that will stop their production. We need to transfer these companies to those who want to keep operating in Russia,” Putin said in a video broadcast by Russian media, as reported by the Russian media. CNN BusinessFriday (11/3).
To carry out Putin’s orders, Russian Prime Minister Mikhail Mishustin said that currently a law has been drafted to regulate such actions.
“If the foreign owner closes the company unreasonably, then in that case the government can propose the application of external administration. It depends on the decision of the owner who will determine the fate of the company in the future,” said Mishustin.
The Russian government has issued a list of previously imported goods and equipment that will be confiscated, aka companies cannot move abroad.
According to a statement published on a government website, the list includes more than 200 items, including technological means, telecommunications, medical equipment, vehicles, agricultural machinery, electrical equipment as well as automobiles and railroad locomotives, containers, turbines, metal and stone.
Then, processing machines, monitors, projectors, consoles, and panels. The restrictions will remain in effect until the end of 2022.
“The main task is to maintain organizational activities and jobs. Most businesses announce temporary layoffs while retaining jobs and wages, and we will monitor this situation closely,” he added.
For information, the exodus of well-known companies includes McDonalds, Coca-Cola and Apple, as well as major oil groups, such as BP and Shell.
The move was followed by Goldman Sachs confirming that it is ceasing operations in the red bear country completely. Other banks are likely to follow suit.
Russian consumer rights organizations have compiled a list of companies that have decided to leave and could be taken over by the government, according to a report in the Russian newspaper Izvestiya.
The list, which was reportedly sent to the Russian Government and the Prosecutor General’s Office, includes 59 companies.
Among them, Volkswagen, Apple, IKEA, Microsoft, IBM, Shell, McDonald’s, Porsche, Toyota, H&M and can be updated with more brands.
(tdh/one)
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