Official confirms plans to nationalize assets of foreign firms

MOSCOW/TOKYO/WASHINGTON/UN/NIZHNY NOVGOROD/BRYANSK, Mar 10 (PRIME) -- The assets of companies that leave Russia can be blocked and the ownership rights limited, head of the Federation Council Committee for Constitutional Legislation Andrei Klishas said on Thursday.

"Not only such measures as nationalization, but the ownership rights restrictions, the prohibition to vote with stakes in affiliates, blocking of assets and other measures can be applied towards the foreign companies from unfriendly states that leave Russia," Klishas said.

News daily Izvestiya reported citing head of Public Consumer Initiative Oleg Pavlov that McDonald's, IKEA and Apple were named among the companies that Russia can nationalize.

"A list of foreign companies that can be nationalized due to the discontinuation of work in Russia was sent to the government and the Prosecutor General's office… There are 59 companies on the list so far, but it will be extended depending on new statements of the foreign business. Those that already are in the document inlcude Volkswagen, Apple, IKEA, Microsoft, IBM, Shell, McDonald's, Porsche, Toyota and H&M," Pavlov said.

The combined liabilities of these companies to the citizens, the government and their corporate clients were estimated at more than 6 trillion rubles, which equals revenue for three past years, he said. The shutdowns of the companies can be qualified as a premediated bankruptcy and large-scale fraud, and the executives can be liable under the criminal code.

White House spokeswoman Jen Psaki said that the U.S. will retaliate if Russia starts confiscating the property of U.S. companies that are leaving its market, but has so far noticed no activities in this area.

Bloomberg reporter Ari Natter said on his Twitter that the U.S. presidential administration could slap sanctions on Russian state nuclear power corporation Rosatom. The sanctions would affect Russia's uranium production and local operations of nuclear power plants, he said.

Spokesman for the UN Secretary General Stephane Dujarric said, commenting on possible impact of sanctions on Russia’s coronavirus vaccine exports, that no bilateral sanctions should harm regular citizens.

Late Wednesday and Thursday in the morning, more companies announced the suspension of their activities or quitting.

Vehicle producer Caterpillar will suspend its plants in Russia and printer maker Epson will suspend its imports to Russia and Belarus. Japanese corporation Hitachi will its activities in Russia except maintenance of electric power systems. Mitsubishi Electric will also stop supplies to the country. Confectionary maker Mondelez has already suspended the investment and advertisement activities. The hotel chains Hilton and Hyatt said they suspended launching new hotels.

According to Reuters, oil and gas producer Eni has suspended signing new contracts on oil and oil products purchases from Russia.

Deputy CEO of Russian kvass brewery Vyatich Sergei Voronchikhin said that Vyatsky Kvass and lemonade can replace Coca-Cola and Pepsi-Cola.

(116.0847 rubles – U.S. $1)

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