United Russia, the ruling political party in the Eurasian country led by Vladimir Putin, said yesterday that a government commission had approved the first step towards the nationalization of foreign assets. Foreign companies leaving the country after the invasion of Ukraine,
Putin’s party said in a statement on the messaging app Telegram that the Legislative Activities Commission supported a bill that would allow companies owned by foreigners from “hostile states” to place more than 25% under external administration. That is, the government will take over. “It will prevent bankruptcy and save jobs,” he said.
Feather Corporate actions vary from condemning Russia to its invasion of Ukraine.With some companies, such as US automaker Ford, temporarily closing factories, but others, such as British energy company BP, pledging to leave the country.
According to the United Russia Party, The bill provides that companies that have announced that they are leaving Russia Can refuse to enter insolvency proceedings if they resume activities or sell shares within five days. Business insolvency occurs when assets become unable to cover debt.
Otherwise, a court will appoint a temporary administration for three months, and with that, the shares of the new organization will be put up for auction and the old one will be liquidated, he said.
The list of companies that continue to operate in Russia is decreasing day by day, but dozens of corporations, including multinational manufacturers and hotel chains, still do business in the country, despite enormous public pressure due to the invasion of Ukraine. Because of the pressure to withdraw.
The demise and permanence of multinationals
hey McDonald’s was among the majors to announce on March 8 that it would temporarily close 850 of its restaurants in Russia. Cola and PepsiCo The next day, Papa John’s restaurant chains and, like others, quickly followed suit.
Caterpillar cited “supply chain disruptions and sanctions” for its decision to suspend operations at its Russian manufacturing facilities on March 9.
“We recognize that this is a time of incredible uncertainty for our valued employees and we will continue to look for ways to support them,” the equipment maker said.
US agribusiness giant Cargill gets $1.1 in revenue from Russia, where it employs 2,500. “What is happening in Ukraine is heartbreaking,” he tweeted on February 27. “It is difficult to understand the challenges facing our employees, customers and their families in the coming days and weeks. Our first priority is their safety, so we have closed some locations.”
Citigroup is “continuing the previously announced exit from its Russian consumer banking business,” New York-based banking giant announced on March 9,
This includes helping corporate clients in Russia, including several US and European multinationals, as they suspend or dissolve their business, he said. “In the process of separation from the global financial system as a result of the invasion of the Russian economy, we continue to evaluate our actions in the country.”
City Russia has $9.8 billion in domestic and international exposure, according to a regulatory filing on Feb. Herbalife Nutrition gets 2.7% of its revenue from Russia and Ukraine.