(Remix News) A Russian government commission on Wednesday approved a bill to nationalize the assets of foreign companies leaving the country following Russia’s invasion of Ukraine.
According to the legislation, companies where over 25 percent of the entity is owned by nationals from “unfriendly states” will be placed under third-party administration to prevent bankruptcy and save jobs, the country’s ruling party, United Russia, announced in a press release published on Telegram.
Companies under foreign ownership which have announced their intentions to suspend operations in Russia can refuse to be placed under administration provided they resume their operations within five days and retain all of their employees.
Failure to comply will result in Russian courts appointing a temporary administrator for three months, after which the shares of the new entity would be put up for sale and the old shares liquidated, United Russia explained.
On Monday, the governing party’s Secretary-General Andrei Turceak described the withdrawal of services by multinationals across Russia as tantamount to a “war” against Russian citizens.
More than 300 corporate brands have announced that they are withdrawing, suspending or restricting their activities in Russia in a bid to exert pressure on the Kremlin to stop its invasion of Ukraine.
These include carmakers Mercedes-Benz, BMW, Volvo, and MAN; tech giants Microsoft, Apple, and Dell; international clothing and alcohol brands; entertainment companies Netflix, Walt Disney, Warner Bros., and Paramount Pictures, financial services providers Visa and Mastercard; furniture store Ikea; fast food outlets McDonald’s, KFC, and Starbucks; and drink brands Coca-Cola and PepsiCo.