The State Duma adopted, at the first reading, a draft law on foreign management for companies that announced their withdrawal from the Russian market. This was reported on the website of the lower house of the Russian Parliament.
In the opinion of the authors of the project, the norm of the new law should concern companies that left Russia for no obvious economic reason, “Based on anti-Russian sentiments in Europe and the United States, their activities significantly affected the stability of the Economy.”
External management may be appointed on the basis of “interruptions in consumer supply, disruption of critical chains, increased costs for consumers, risk threat to key dependent industries, significant reduction in business”.
The issue of appointing an external authority may be initiated by a federal minister, a regional governor, or the president of a republic.
The explanatory note states that “The relevant proposal is being evaluated by the interdepartmental commission of the Russian Ministry of Economic Development.”
The decision on the initiation of external management should be taken by the court. Foreign owners will be able to sell a block of shares or continue to operate in Russia.
External management will be appointed for up to 18 months. Their powers may be terminated before the expiry of this period – either by decision of the commission after the appeal of the shareholders (majority shareholders) – provided that the issue that gave rise to the introduction of external management is resolved – or later. initiation of bankruptcy proceedings.
The proposal to nationalize foreign companies leaving the Russian Federation was made on March 7 by the United Russia party.
Andrey Turchak, Secretary of the General Council of United Russia, called the actions of companies suspending their activities as “deliberate bankruptcy.” About 60 businesses, including McDonald’s, IKEA, Apple, Volkswagen, Microsoft, Toyota and others, announced that they are withdrawing or suspending their activities in the Russian market. This happened after the military operation of the Russian Federation in Ukraine began on February 24.
On March 10, Oleg Pavlov, head of the Public Consumer Initiative, said that the moment a company announced its withdrawal from the Russian Federation to Russian consumers without guarantee, it was included in a special list of the government.
According to Pavlov, the total liabilities of these companies to citizens, the state and contractors are more than 6 trillion rubles. The same amount is their income in Russia for the past three years. At the time, the media noted that the company may be awaiting the arrest of accounts and assets, the introduction of foreign management, the expropriation of property.
On March 10, Vladimir Putin supported a proposal for external management of foreign companies leaving Russia. According to him, the Russian side will not close foreign organizations and is open to working with all partners. The President of Russia emphasized the need to reliably protect the rights of foreign investors and partners who continue to work in Russia.
It was learned that on May 17, the Russian Union of Industrialists and Entrepreneurs (RSPP) sent a letter to Maxim Reshetnikov, the head of the Ministry of Economic Development, about this draft law. The RSPP believes that external governance law can lead to abuse, theft and other illegal acts on behalf of appointed managers. In addition, the organization saw a threat to the business environment in Russia.
until the lien comes
On March 9, White House Press Secretary Jen Psaki said that the United States would retaliate if Russia decided to seize the assets of American companies that left the country.
“If they (Russian authorities) take such measures, then I am sure that actions on our part will take place, but at the moment nothing like this is happening,” said the representative of the American administration.
According to him, the US government did not “behind the scenes” forcing companies to leave the Russian market, but they welcome such actions.
In early May, the Speaker of the State Duma Vyacheslav Volodin proposed the seizure of foreign enterprises operating in Russia as a mirror measure of the seizure of property of Russian citizens abroad.
“A dangerous precedent has been created where states must boomerang themselves. “This decision will not affect our country’s economy,” he said. He said that the “seized yachts, villas and other property” of the oligarchs did not work for the development of the Russian Federation.
Volodin stated that Russian entrepreneurs are now “acting in a civilized manner” and are buying foreign companies operating in Russia in accordance with international law and buying shares of partners who want to exit our market. “What cannot be said about a number of hostile countries: Lithuania, Latvia, Poland, and even the United States, which is engaged in theft,” said the speaker of the lower house.
In this regard, in relation to an enterprise located on the territory of the Russian Federation, whose owners are from unfriendly countries where such decisions are made, it is correct to respond with mirror measures: to confiscate these assets.
According to Volodin, the income from the sale of assets should be better directed towards the development of Russia.
Source: Gazeta
Barbara Dickson is a seasoned writer for “Social Bites”. She keeps readers informed on the latest news and trends, providing in-depth coverage and analysis on a variety of topics.