Russia takes a step to nationalize closed Western companies | Ukraine and Russia war

The bill allows companies that were more than 25 percent owned by foreigners from so-called “unfriendly countries” to be placed under guardianship. This should prevent bankruptcy and preserve jobs. Large foreign companies such as Volkswagen and Mercedes-Benz have closed factories in Russia.

Companies can avoid this receivership by resuming operations or selling their shares within five days of the announcement, United Russia says. Then the activities and personnel must be retained. If this does not happen, a temporary board of directors for a period of three months is appointed by the judge and the company’s assets and activities are transferred to a new company. At the end of those three months, the shares in the new organizations are then auctioned.

Andrei Turchak, a deputy from the United Russia party led by President Vladimir Putin, described the closure of factories as a declaration of war against Russia and the Russian people. “It is an extreme measure, but we will not tolerate being stabbed in the back and will protect our people,” he added.