Russia seizes Western businesses’ assets
As part of the Russian response to Western sanctions and the migration of foreign firms since its invasion of Ukraine, the nation has prepared plans to nationalize the assets of western companies leaving the country.
McDonald’s, Coca-Cola, Pepsi, and many others are announcing that they would halt operations in Russia this week, the nation’s economic ministry warned that the nation might seize temporary control of exiting businesses where foreign ownership exceeded 25%.
Vladimir Putin said the Kremlin could find legally possible 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.”
Prime Minister Mikhail Mishustin 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.
Putin’s statements are another sign of Russia’s economic distress as a result of severe Western sanctions. Since the invasion began two weeks ago, the ruble has lost more than 40% of its value, leading the nation’s central bank to prohibit currency transactions in an effort to stop the decline.
Michael Anthony McFaul, an American diplomat who served as the United States Ambassador to Russia from 2012 to 2014, warned Western businesses that still operate in Russia to immediately get out of the country.
It is reported that 200 major Western corporations have either withdrawn or suspended business with Russia. This list was created by Yale.
As a result of Western sanctions limiting the country’s supply of dollars and euros, the central bank imposed limitations on withdrawals from foreign-currency accounts this week, causing people to wait for hours at banks to withdraw their money.
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