Will Russia Nationalize the Assets of Companies That Left the Country?

The Russian Ministry of Economy has developed a legislative draft aimed at preventing the growing exit of international companies from Russia due to the war in Ukraine and creating potential grounds for their nationalization.

The newspaper Izvestia notes that the Ministry has already sent a list of around sixty foreign companies that have left the Russian market to the government and the Attorney General’s office, which may be subject to nationalization.

On March 9, the Russian government’s commission approved a package of measures to support the economy under sanctions.

The bill, which is being promoted by the ruling United Russia party, also outlines the mechanism for the nationalization of assets.

White House Press Secretary Jen Psaki, commenting on discussions regarding the potential nationalization of the production of Western companies that left Russia, stated: “Any illegal action by the Russian authorities to seize the assets of these companies will ultimately only bring additional economic suffering to Russia. It will reinforce the already clear signals to the global business community that doing business in Russia is not safe.”