What is the best way to keep Western companies in the country? A clear case for Putin, as the Russian government is literally reaching out to Western companies and threatening to seize the assets of companies that are about to bail out. This “temporary” nationalization of foreign assets makes it even more difficult for companies to withdraw from Russia…
The Russian state recently took over the factories of the Danish beer brewer Carlsberg and the French food company Danone. The Russian operations of the two European companies were entrusted to state asset management by President Vladimir Putin and will be taken over by Russian oligarchs, according to the Financial Times.
“Naughty” companies will be “punished”
However, these are just two examples of the many companies forced to sell factories in Russia, either well below their value or nationalized. Those “naughty” Western companies that want to say goodbye by selling their Russian company should be confiscated and taken over at a bargain price. This increases uncertainty among those companies that have not yet left Russia and that – for better or for worse – have to reckon with total losses.
Western companies in trouble
Those European companies that have not yet left Russia are now under increasing pressure – from both sides. Because since the start of the Russian invasion of Ukraine, only a fraction of companies have turned their back on the country. On the one hand, they have to answer to the public in their Western homeland, on the other hand, the longer the companies stay in Russia, the more they are ruined.
The Kremlin has been doing everything it can for months to make it as unattractive as possible for companies to leave Russia. Planned sales must be submitted for approval to a government commission, which decides only 40 to 50 cases a week, according to Moscow lawyer Alexei Saposhnikov. An estimated 2,000 to 3,000 businesses have been affected.
“It won’t work without us”
In this or a similar way, countless companies are now quarreling, including many medium-sized and family-owned companies, which apparently do not want or cannot do without the money from Russia. The companies would provide products without which “the number of lives this war claims would only increase.” Moreover, it is not the entire Russian population that is waging war against Ukraine. But critics see it differently. Western companies generated billions in sales in Russia last year and they financed the Russian war machine in Ukraine through direct profits taxes.
What is the situation in Austria?
The situation in Austria is the same as in many other Western countries. A number of well-known brands such as Red Bull or the packaging company Mayr-Melnhof have withdrawn from Russia. However, others, such as the toll company Kapsch or the timber group HS Timber, are still active in Russia.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
