Russia to nationalize assets of foreign companies leaving
A view shows Russia’s state flag ahead of a meeting of Russian President Vladimir Putin with French President Emmanuel Macron in St. Petersburg, Russia, May 24, 2018. (REUTERS/GRIGORY DUKOR)
Russia’s ruling party, United Russia, said on Wednesday that a government commission had approved the first step towards nationalizing the assets of foreign companies leaving the country following economic sanctions against Ukraine.
United Russia added in a statement on the Telegram messaging app that the Committee on Legislative Activity had backed a bill allowing companies more than 25% owned by foreigners from “hostile states” to be placed under external administration.
“It will avoid bankruptcy and save jobs,” he said.
Corporate actions aimed at censuring Russia for its invasion of Ukraine vary widely, with some companies like US automaker Ford temporarily closing factories, but others like British energy company BP vowing to leave the country.
United Russia said that under the proposed bill, companies that had announced they were leaving Russia could refuse to enter administration if, within five days, they resumed operations or sold shares, provided that the company and the employees stay.
Otherwise, a court would appoint a temporary administration for three months, after which the shares of the new organization would be auctioned and the old one would be liquidated, he added.
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