The Kremlin is planning to make use of a confiscated US firm to provide meals to its navy.
Supply: Reuters, citing a doc
Particulars: A letter reviewed by Reuters from canned meals producer Glavprodukt – the one American-owned firm in Russia to be positioned beneath new state administration after being seized in October – states that the takeover was essential to stabilise manufacturing, notably for future provides to the Russian Nationwide Guard and Ministry of Defence.
Glavprodukt is now beneath the management of Rosimuschestvo, Russia's state property administration company, after being seized from its Los Angeles-based founder, Leonid Smirnov.
The Kremlin-aligned Russian information company RBC reported in March that prosecutors have accused Smirnov and his affiliated firms of transferring roughly RUB 1.38 billion (US$17 million) out of Russia between 2022 and 2024.
Glavprodukt's property was seized by the Moscow Arbitration Court docket on 12 March on the request of the Prosecutor Basic's Workplace, with a listening to scheduled for 18 April. Smirnov denies any wrongdoing, describing the case as a "Russian-style company raid" supposed to take over his enterprise.
Round a dozen European firms have additionally misplaced their Russian subsidiaries attributable to decrees issued by Russian chief Vladimir Putin. Amongst them are Danish brewing big Carlsberg and Finnish vitality agency Fortum. The Kremlin has signalled that such confiscations could proceed.
Initially, the Kremlin had counted on a swift victory in Ukraine, however the conflict has dragged on for greater than three years. This has compelled Russia to drastically ramp up navy spending and tighten its grip on strategic belongings. In 2022, Moscow struggled to safe important navy provides, even together with meals.
Background:
- Putin ordered the Russian Cupboard of Ministers (authorities) to arrange for the comeback of Western firms.
- Following the intensification of negotiations between the US and Russia, one of many Western firms obtained calls inviting them to re-enter the Russian market.
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