'Nationalization of Taler' Russia: "The fate of the company depends on the owner's decision"

Putin Supports Nationalization of Foreign Companies Leaving Russia

Russian President Vladimir Putin
[Photo by EPA Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Russian President Vladimir Putin stated on the 10th (local time) that he supports the government's plan to nationalize the assets of foreign companies leaving Russia. This move is a countermeasure following the 'sanctions bomb' from the West after the invasion of Ukraine, which led to a series of global companies withdrawing.

At a government meeting that day, President Putin said, "We will find a legal way to retain foreign companies leaving Russia," and added, "After introducing external management (court-appointed management), we will promote transferring to those willing to work." He also mentioned that there are sufficient legal and market means for this.

The Russian government, two weeks after the invasion of Ukraine, on the 8th, faced with the simultaneous withdrawal announcements from American companies such as McDonald's, Coca-Cola, Pepsi-Cola, and Starbucks, responded by pulling out the nationalization card. Japanese Uniqlo, which had initially expressed its intention to stay, also announced on the same day that it would withdraw from the Russian market.

Specifically, Russia plans to allow external court-appointed management for foreign companies owned 25% or more by foreigners from 48 non-friendly countries, including South Korea, if those companies leave Russia. The government and parliament have begun full-scale moves, including promoting the enactment of related laws.

Russian Prime Minister Mikhail Mishustin warned that day, "If foreign owners close companies without justification, the government will propose the introduction of external management," and added, "The fate of the company will be decided according to the owners' decisions."

Additionally, Bloomberg News reported that the option of inviting managers or directors from outside is being considered in the process of deciding new owners for foreign companies.

These moves by Russia are interpreted as an attempt to reduce the damage to its economy after being pushed to the brink of national default due to the West's intense economic sanctions.

Japan's Nihon Keizai Shimbun analyzed, "The Russian government aims to suppress economic turmoil caused by massive foreign capital withdrawal and protect the domestic employment market." The UK's Guardian explained, "This tough measure aims to prevent further outflow of foreign capital and pressure companies that have temporarily suspended operations to resume business."

This content was produced with the assistance of AI translation services.