The Russian government has said foreign firms that fled the country amid the ongoing fight with Ukraine should know that it will not be easy to return to its markets.
TrackNews understands that many businesses owned by foreigners have shut down their firms leaving employees stranded in the rise of the ongoing war with Ukraine.
Russia is however stating that the firms may have their companies and production facilities confiscated by the Russian state as a result of their decisions.
Businesses that leave the country are “basically abandoning their staff to their fate,” said former Russian president Dmitry Medvedev in a terse statement on Thursday.
“To prevent people ending up unemployed and on the streets, the Russian government is taking steps to bring about the insolvency and subsequent nationalisation of these companies,” the deputy chief of the Russian Security Council said.
“On the foundation of the assets left behind by investors in panic, the new industry would have to be built. This approach is objective and fair,” said Medvedev.
TrackNews understands that among the affected are companies from Germany, other EU countries, and the United States of America.
Though there is presently no law in Russia to nationalize a company’s assets, calls are, however, growing among Russian politicians for such a law in reaction to the EU sanctions.
There is much anticipation by stakeholders to see the Russian parliament decide on such a process soon.
TrackNews understands that quite a number of the Western companies affected had only announced that operations are being paused at first, without mentioning full closure or withdrawal.
“Whatever the reasons for moving away, foreign firms should understand that it will not be easy to come back to our markets,” Medvedev reiterated.
Kremlin spokesperson, Dmitry Peskov, warned that the nationalisation of Western companies and seizure of their assets could have negative consequences for both sides, as Russian companies abroad may also have their assets seized.
Proposals are also circulating for the assets of companies in Russia to be handled through fiduciary trusts.
