Russia threatens western companies with nationalization of companies and real estate (March 10, 2022)

Western companies that have ceased operations in Russia because of the war against Ukraine are now facing possible nationalization of their factories and production facilities. The companies would "practically leave their collectives to fend for themselves," former Russian President Dmitry Medvedev said.

The Russian government is working on steps to initiate the bankruptcy of all the companies and then the nationalization of the property, the deputy head of the Russian Security Council said. "A new production needs to be built on the assets left by the panicked investors," Medvedev said. According to him "such an approach is objective and fair."

Update: Russian Commission Backs Nationalization of Exited Western Businesses.

Russia’s government legislative commission approved measures on Wednesday that will pave the way for complete nationalization of property of Western companies that are exiting the country. The commission’s role includes reading and assessing laws that the government intends to propose to the State Duma, the lower house of the Russian parliament.

The country's dominant political party, United Russia, said on Wednesday that the latest measures seek to prevent bankruptcies and preserve jobs at organizations that are more than 25% owned by foreign entities of so called "unfriendly governments." Russia’s government legislative commission approved new measures on Wednesday that pave the way for the nationalization of property of Western companies that are exiting the country.

The commission’s role includes reading and assessing laws that the government intends to propose to the State Duma, the lower house of the Russian parliament. Russia’s dominant political party, United Russia, said on Wednesday that the actually the latest measures seek to prevent bankruptcies and preserve jobs at organizations that are more than 25% owned by foreign entities of "unfriendly governments." The measures include a provision that will enable members of the board of directors at designated organizations, or Russia’s federal tax service, to appoint external management to keep operations running.

Still, owners would technically be able to object to the appointment of external management within five days if they agree to resume operations or sell their interest. Alternatively, a court will appoint external management and shares of the organization will be put up for sale. New buyers will have to retain at least two-thirds of the workforce.

Source: https://www.tagesschau.de/newsticker/liveblog-ukraine-donnerstag-101.html https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-03-09/card/russian-commission-backs-nationalization-of-exited-western-businesses-YmEMuTCPezVe08xDRqAB