As companies leave Russia, their assets could be seized

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The 'Evropeisky' mall in Moscow was once a symbol of a Russia integrated into the global consumer economy, with atriums named after cities like London, Paris and Rome.

A draft law could allow Russian courts to appoint external administrators for companies that cease operations and are at least 25% foreign-owned. If the owners refuse to resume operations or to sell, the company's shares could be auctioned off, the ruling United Russia party has said, calling it "the first step toward nationalization."

White House press secretary Jen Psaki criticized "any lawless decision by Russia to seize the assets of these companies," saying that it "will ultimately result in even more economic pain for Russia." Companies like French foods giant Danone, which is suspending capital investment in Russia but continuing production there, are "essentially Russian companies" with local staff and supply chains and can function more or less autonomously of the foreign owners, Weafer said.

Without imports, businesses like furniture maker Ikea or many fashion retailers can't function, and will likely have to leave the Russian market altogether, Weafer said.

 

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and Russia is going to develope the associated skill sets, spend lots of Roubles..over many years to re-establish all those businesses I'm sure...good luck.

We jacked up the Russian billionaires. While Russia just nationalized all western interest. It’s a war that will bring us to the precipice. Movie war of the worlds line John Cleese said. It’s only at the precipice that we will change. Well we’re here, let’s change damit

The Russian government will just take them over, nationalize them and open them back up again.

Deservedly so.

One could argue these were never their assets to begin with… they were useful idiots.

The companies in Russia are now a write off anyways and they will just use it as a business loss on their taxes. They win anyways.

All companies leave , best get control of their business assets from Russia thugs

They can all afford it! They are paying the price but so are every day citizens who struggle to keep up with costs rising due to this war. So who is it hurting more? The citizens of Ukraine actually!!

If there’s one thing you can count on from authoritarian regimes it’s to expect to have your assets seized/frozen if you ever think about going against them.

They'll get all the junk directly from China for a fraction of the price, without the label. So that's actually good for Russia, not to mention that all these companies' assets left behind, their inventories are worth billions. So Russia benefits from everything.

Pretty sure they counted on that or similar when they left. Lots of tax loss carry forwards anyway

Just wait what happens when Russia cuts oil and gas to Europe...the european economy will go down in flames...I suspect some european countries are second guessing their allegiance to the US as Europe will get hurt in that story, not the US...

7 reasons why sanctions won’t hurt Russia

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Not all Western companies sever ties to Russia over UkraineA shrinking number of well-known companies are still doing business in Russia, even as hundreds have announced plans to curtail ties. Burger King restaurants are open, Eli Lilly is supplying drugs, and PepsiCo is selling milk and baby food, but no more soda Thanks for the list. No whoppers for a while then That’s fine, we can boycott them here.
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