A legislative committee led by the Russian ruling party approved on March 8 measures to pave the way for the nationalization of the property of Western companies currently leaving the country in protest of a military attack on Ukraine.
United Russia, the dominant party in the House of Commons of the Russian Parliament, said that this measure would prevent bankruptcy and maintain employment in foreign-owned organizations with more than 25% of the “unfriendly government” entity. He said he was aiming for.
The role of the Commission includes a review of the legislation that the government will propose to the House of Representatives.
The motion was proposed after Andrey Turchak, the secretary-general of the Party General Council, a senior member of United Russia, proposed nationalization of foreign-affiliated companies and factories in retaliation for Western sanctions.
“United Russia is proposing to nationalize the production plants of companies announcing the end and closure of production in Russia during special operations in Ukraine,” a statement released on the party’s website. In it, Turchak wrote.
“We will act in accordance with the law of war and take strict retaliation,” said Turchak, who sees sanctions as a form of economic terrorism against Russian citizens.
“This is an extreme measure, but we do not tolerate back stings and protect our people.”
“This is a real war, not against Russia as a whole, but against our citizens,” he said.
United Russia, led by Russian President Vladimir Putin, has called on the Russian government to control the operation of dozens of Western companies that are out of service in the country.
The new measures include provisions that allow members of the board of directors of these target organizations, or the Department of Taxation of the Russian Federation, to appoint external managers to continue their operations.
Foreign owners may oppose the appointment of an external administrator within five days, even if they agree to reopen the business or sell their stake in the designated company.
If the owner does not meet these requirements, a Russian court will appoint an outside administrator and the organization’s shares will be put up for sale.
New domestic buyers need to hold at least two-thirds of the workforce.
On March 8th, Nestlé, Coca-Cola, PepsiCo, Philip Morris and Imperial Brands joined the list of multinational companies fleeing Russia.
Procter & Gamble and Unilever had already suspended their investment in Russia, but McDonald was operating in 847 restaurants in Russia after a boycott threat from a U.S. municipality and social media attacks. Stopped.
Ford, Adidas and Nike have also announced that they will temporarily close their Russian stores and factories in solidarity with Ukraine, facing supply chain disruptions due to the conflict.
Western sanctions have targeted Russian-owned banks and emerging conglomerates, discouraging foreign investment in the country.
The European Commission is said to be preparing new sanctions on additional Russian oligarchs and politicians, and three Belarusian banks.
The White House announced on March 8 that the United States will begin banning Russia’s oil imports in addition to other sanctions.
Analysts say economic conflicts and the invasion of Ukraine could lead to soaring energy, food and commodity prices, and a shortage of key strategic materials as the global economy recovers from the CCP (Chinese Communist Party) virus. Is high in the pandemic.
In addition to fossil fuels, Russia is also one of the largest suppliers of raw materials used in the production of agricultural fertilizers such as potash.
Meanwhile, Norway-based fertilizer maker Yarra cuts ammonia and urea production in Italy and France on March 9 due to soaring gas prices, affecting fertilizer supply to Europe. Said to give.
Russia is also a large supplier of metals such as mercury used in computer chips.
However, while the war in Ukraine has increased the value of goods that Russia normally exports, sanctions have so far prevented Moscow from taking advantage of high prices.
Reuters contributed to this report.
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Brian S. Jung is from New York City and is a resident with a background in the political and legal industry. He graduated from Binghamton University.