Kremlin threatens to take control of assets owned by multinationals that exited Russia over Ukraine
The Kremlin has threatened to take control of assets owned by multinational companies that have pulled out of Russia in response to the country’s invasion of Ukraine.
Speaking to President Putin yesterday, Russia’s prime minister Mikhail Mishustin said he had prepared a draft law which would allow the Russian government to take control of assets owned by foreign companies that “shut down their facilities without reasonable grounds.”
“If foreign owners shut down their facilities without reasonable grounds, the Government is proposing the introduction of external management. Depending on the owner’s decision, this will determine the future of the company,” Mishustin said.
Speaking on Sputnik radio, Mishustin later explained that external professionals would be hired to manage the assets of companies that have exited Russia, as he suggested foreign multinationals may seek to reclaim their assets in the future.
Mishustin explained that the “key goal” of the new law will be to “prevent manufacturing shutdowns” and to retain jobs, as major companies, including McDonalds and BP, continue to pile out of Russia.
The new laws will allow the Russian government to take control of assets owned by any company, that is at least 25 per cent owned by foreign shareholders, that has exited Russia in the weeks since the country first sent troops into Ukraine, according to reports.