Apple, IKEA, among companies Russia is considering nationalizing

McDonald’s, IKEA and Apple are few among the list of 59 companies that the Russian Federation may nationalize, according to Oleg Pavlov, head of the Public Consumer Initiative organization.

This comes as a response to many companies cutting ties with Russia in line with international sanctions, following Russia’s invasion of Ukraine on February 24.

“A list of foreign companies has been sent to the government and the Prosecutor General’s Office that can be nationalized due to the cessation of their work in Russia,” Pavlov said.

“So far, there are 59 companies on the list, but it will expand depending on new statements from foreign businesses. Among those who have already found themselves in the document: Volkswagen, Apple, IKEA, Microsoft, IBM, Shell, McDonald’s, Porsche, Toyota, H&M and others.”

The head of the Public Consumer Initiative also noted that the Ministry of Industry and Trade, law enforcement officers, and Rospotrebnadzor, Russia’s federal consumer rights agency, are all working together on the list and it’s implications.

According to Pavlov, the list is not yet final, and companies that will announce their withdrawal without providing guarantees to Russian consumers will be included in the list.

He also specified that administrative, criminal and judicial procedures would be applied to the companies.

“The total amount of obligations of these companies to citizens, the state and counterparties are more than 6 trillion roubles. This is precisely the amount of their revenue in Russia over the past three years.

“Being on the anti-sanction black list means, for the violating company and its management, the following risks: arresting of its accounts and assets, the introduction of external management to replace the current one and the nationalization of property.

“Additionally, the management of these enterprises will be held criminally responsible for deliberate bankruptcy and fraud on an especially large scale, ” Pavlov added.

Dmitry Peskov, the press secretary of the President of the Russian Federation, commented on the proposal for the nationalization of companies that announced their withdrawal from the Russian market.

He said that all options for responding to sanctions and the development of events are being developed at the government headquarters.

Source: Jewish Post