Russia’s ruling United Russia party announced that the government has decided on the first steps that will lead to the nationalisation of the assets of foreign companies. Not all of them, but only those who decided to leave Russia in response to the war in Ukraine.
The measure is intended to apply to the assets of foreign companies that are still doing business in Russia but have already indicated that they will cease their economic activities in the country. At the same time, the assets are to be assets in which the ownership share of foreign companies is more than 25 percent. They are supposed to be companies based in one of the countries on Russia’s enemies list. Russia’s ruling United Russia party made the announcement via Telegram.
“This will prevent bankruptcies and save jobs,” Reuters reported, citing a statement from the United Russia party. Nationalisation is to occur if the company in question does not resume operations or sell its shares within five days.
In recent days, one major foreign company after another has announced that it will end or suspend its economic activities in Russia because of the Russian invasion of Ukraine. Mc Donald’s, Starbuck’s and Coca-Cola are among the latest to do so.
