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Russia threatens to nationalize Western companies

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Response to Sanctions
:
Russia threatens to nationalize Western companies

Previously, corporations such as McDonald’s had announced that they would suspend their business in Russia for the time being. Now it is said from Moscow: The companies “practically leave their groups to their fate.”

Western companies leaving the country due to Russia’s war against Ukraine now face the nationalization of their factories and production facilities.

The companies “practically leave their groups to their fate,” said former Russian President Dmitry Medvedev. Therefore, the Russian government is working on steps to initiate the bankruptcy of companies and then the nationalization of property, said the deputy head of the Russian Security Council. The priority is that people do not end up on the street.

Medvedev said the new production must be built “on the basis of assets left behind by panicked investors.” “Such an approach is objective and fair.” Among others, companies from Germany, other EU countries and the USA are affected.

“Returning to our market (…) is no longer easy”

There is still no specific law in Russia to nationalize assets. But calls from prominent politicians to respond to Western sanctions in this way are increasing, and growing louder. The Russian parliament was expected to decide soon on such a course of action.

Many Western companies initially only announced that operations would be suspended. In most cases it was not about hiring or retirement. “Whatever the reasons for leaving, foreign companies must understand that returning to our market will no longer be easy,” Medvedev said.

According to the Interfax agency, Kremlin spokesman Dmitry Peskov warned that nationalizing Western companies and confiscating their assets would have negative consequences for both sides. Russian companies are also threatened with the confiscation of their assets abroad. There are also now suggestions that the assets will be held in trust due to sanctions.

© dpa-infocom, dpa:220310-99-463710/2

(dpa)


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