Economy

Russia proposes to nationalize foreign factories that have closed operations

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A senior member of Russia’s ruling party has proposed nationalizing foreign-owned factories that have shut down their operations in the country over what the Kremlin calls a “special military operation” in Ukraine.

Several foreign companies, including Toyota, Nike and homeware retailer IKEA, announced the temporary closure of stores and factories in Russia to pressure the Kremlin to stop the invasion of neighboring Ukraine.

In a statement published late on Monday (7) on the website of the United Russia party, the secretary of the ruling party’s general council, Andrei Turchak, said closing operations was a “war” against Russian citizens.

The statement named Finnish food companies Fazer, Valio and Paulig as the latest to announce closures in Russia.

“United Russia proposes the nationalization of the production plants of the companies that announce their departure and the interruption of production in Russia during the special operation in Ukraine,” Turchak said.

“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.

“We will take harsh retaliatory measures, acting in accordance with the laws of war,” Turchak said.
Paulig’s chief executive told Reuters in an email that this would not change his plans to withdraw from Russia. The companies Fazer and Valio declined to comment when contacted by Reuters.

Fazer, which makes chocolate, bread and sweets, has three locations in St. Petersburg and one in Moscow, employing around 2,300 people.

Valio has a cheese factory and employs 400 people in Russia, and Paulig has a coffee roaster that employs 200 people in the country.

Last week, Finland, which is a non-NATO member and shares borders with Russia, agreed to strengthen security ties with the United States as it nervously watches Moscow’s invasion of Ukraine.

Essi Lehto collaborated. Translated by Luiz M. Gonçalves

EuropefactoryKievNATORussiasheetUkraineVladimir PutinVolodymyr ZelenskyWar in Ukraine

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