According to Moscow, Western businesses that leave Russia due to the war may have their companies and production facilities confiscated by the Russian state.
To prevent people from becoming unemployed and living on the streets, the Russian government is taking steps to bring these companies into insolvency and then nationalize them, according to the deputy chief of the Russian Security Council.
A new industry would have to be built on the assets left behind by “panicked investors.” “This approach is objective and fair,” Medvedev said.
Companies from Germany, other EU countries, and the United States are among those affected.
There is no law in Russia that allows for the nationalization of a company’s assets.
However, in response to the EU, Russian politicians are increasingly calling for such legislation.
Many Western companies initially reported that operations had been paused, without mentioning full closure or withdrawal.
“Whatever the reasons for their departure, foreign firms should understand that returning to our markets will be difficult,” Medvedev said.
Dmitry Peskov, a Kremlin spokesperson, warned that nationalizing Western companies and seizing their assets could have negative consequences for both sides, as Russian companies abroad may also have their assets seized.
Proposals are also circulating for fiduciary trusts to be used to manage the assets of Russian corporations.
