NEWS
Ukraine War: Russia says it would nationalize foreign companies
Former Russian president Dmitry Medvedev has said that, businesses that leave Russia due to the war are “basically abandoning their staff to their fate.” Therefore, such western businesses may have their companies and production facilities confiscated by the Russian state.
A new industry would be built on the foundation of the assets left behind by “investors in panic,” This approach is objective and fair,” said Medvedev.
To prevent the rate of unemployment in the country from skyrocketing, the Russian government is taking steps to bring about the insolvency and subsequent nationalization of these companies, the deputy chief of the Russian Security Council said.
Among the affected are companies from Germany, other EU countries, and the U.S.
There is no law in Russia to nationalize a company’s assets, but calls are growing among Russian politicians for such a law in reaction to the EU sanctions and it is expected that the Russian parliament will decide on such a process soon.
Many Western companies had only reported that operations are being paused at first, without mentioning full closure or withdrawal.
“Whatever the reasons for moving away, foreign firms should understand that it will not be easy to come back to our markets,” Medvedev said.
Kremlin spokesperson, Dmitry Peskov, warned that nationalization of Western companies and seizure of their assets could have negative consequences for both sides, as Russian companies abroad may also have their assets seized.
