As several Western corporations continue to leave Russia as a result of it’s military action in Ukraine, Russia may nationalize the foreign owned factories that have shut operations in the country.
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In the recent days dozens of Western corporations have left Russia abandoning billions in goods, property, and investments. Russia has a plan to cope with this: a senior member of Russia’s ruling party has suggested nationalising foreign-owned factories that have stopped operating in the country as a result of the operation in Ukraine.
Toyota, Nike, and IKEA are among the corporations that have announced store and factory closures in Russia to put pressure on the Kremlin to end its military action in Ukraine. The secretary of the ruling party’s general council, Andrei Turchak, stated that shutting down activities constituted a “war” against Russian citizens in a statement posted on the United Russia website on Monday evening.
Fazer, Valio, and Paulig, all privately held Finnish food firms, were the most recent to declare closures in Russia, according to the statement.
“United Russia proposes nationalizing production plants of the companies that announce their exit and the closure of production in Russia during the special operation in Ukraine,” stated Turchak.
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“This is an extreme measure, but we will not tolerate being stabbed in the back, and we will protect our people. This is a real war, not against Russia as a whole, but against our citizens,” he said adding that “We will take tough retaliatory measures, acting in accordance with the laws of war.”
In an email to Reuters, Paulig’s Chief Executive stated that the company’s intentions to leave Russia would not be affected.
Fazer, which produces chocolate, bread, and pastries, employs roughly 2,300 workers in three bakeries in St Petersburg and one in Moscow. In Russia, Valio has a cheese plant and employs 400 people, while Paulig has a coffee roastery and employs 200 people.