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Russia proposes nationalising foreign-owned factories that shut operations

Published 03/08/2022, 07:42 AM
Updated 03/08/2022, 07:31 PM
© Reuters. FILE PHOTO: Secretary of the United Russia Party's General Council Andrey Turchak speaks during a news conference in Donetsk, Ukraine February 23, 2022. REUTERS/Alexander Ermochenko

COPENHAGEN (Reuters) -A senior member of Russia's ruling party has proposed nationalising foreign-owned factories that shut down operations in the country over what the Kremlin calls a special military operation in Ukraine.

Several foreign companies including Ford and Nike (NYSE:NKE) have announced temporary shutdowns of stores and factories in Russia in order to put pressure on the Kremlin to stop its invasion of neighbouring Ukraine and as their supply chains are disrupted.

In a statement published on Monday evening on the United Russia website, the secretary of the ruling party's general council Andrei Turchak said shutting operations was a "war" against the citizens of Russia.

The statement mentioned Finnish privately owned food companies Fazer, Valio and Paulig as the latest to announce closures in Russia.

"United Russia proposes nationalising production plants of the companies that announce their exit and the closure of production in Russia during the special operation in Ukraine," Turchak said.

"This is an extreme measure, but we will not tolerate being stabbed in the back, and we will protect our people. This is a real war, not against Russia as a whole, but against our citizens," he said.

"We will take tough retaliatory measures, acting in accordance with the laws of war," Turchak said.

Paulig Chief Executive told Reuters in an email this would not change its plans to withdraw from Russia. Fazer and Valio did not wish to comment when contacted by Reuters.

Fazer, which makes chocolate, bread and pastries, has three bakeries in St Petersburg and one in Moscow, employing around 2,300 people.

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Valio has a cheese factory and employs 400 people in Russia, and Paulig has a coffee roastery and employs 200 people in the country.

Last week, non-NATO member Finland, which shares a border with Russia, agreed to strengthen security ties with the United States as it nervously watches Russia's invasion of Ukraine.

Latest comments

Why does NATO keeps expanding ?  Both sides should remain status quo, then this war would not have happened.
NATO is a defensive pact. It is not an aggressor against its neighbors. When free nations see Russia invading countries outside its borders, it inspires free nations to join NATO for their common defense from an aggressor.
You are woefully misinformed. The US did not threaten Russia with war during the Cuban missile crisis. The US put a naval blockade around Cuba to keep the Soviet Union from bringing nuclear weapons to Cuba. Get your facts straight.
"Why does NATO keeps expanding?"  -- I think the answer would be obvious these days when you watch the russian tanks rolling over Ukrainian cities on TV.....you don't think Poland or Latvia is thinking "thank god we are part of NATO" and Georgia is thinking ****I wish I am in NATO now"?
I am sorry for the Russian people, but Russia is not being "stabbed in the back," it is being punched in the face for being a bully.
Putin won the presidential election with 77% in 2018. (After annexation of Crimea.) Do you think those Russians condemning the war now and protesting against it would do the same in case Russia would be successful in Ukraine?
 "Putin won the presidential election with 77% in 2018."  -- yeah OK, I remembered when Saddam Hussain won his elections with 99.8%, clearly the Iraqi people loved him
Don't worry, the Russian reserves in Western banks will cover it.
And the wealth of oligarchs.
Russian foreign reserves were at or above $600 bn in Feb before the war started, about half of them are now stuck in western banks no longer accessible to Putin.....oh and Russia already spend at least $100bn of the other $300bn reserve to try to prop up the russian rouble.....
Good luck with that You will never see a single $ of foreign investment.80% of the wealth is still in the West Let's see maybe Belarus does invest or Kazakhstan.
LOL. Go for it and see what happens to the Russian economy long term.
Ñsoviet empire is back bebe!!!
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