The Russian ruling party is proposing the expropriation of outgoing companies
UNITED RUSSIAThe Duma’s largest political party is proposing to the Kremlin the expropriation of the activities of companies withdrawing from Russia because of the war on Ukraine and the sanctions imposed on Russia. reports Helsingin sanomat newspaper.
Andrei TurtshakIn his presentation on Monday, the Secretary of the United Russia General Council specifically pointed out three Finnish companies: Fazer, Paulig and Valio.
He said the Kremlin should take strong retaliation and consider expropriating the activities of companies withdrawing from the market as a means of protecting local workers and national production potential.
“In all cases, the decisions have been strictly political. Their price is a large number of Russian workers who will be laid off overnight, ”Turtshak said. “[Expropriation] is an extreme measure, but we do not tolerate stabbing in the back. “
Fazer announced on Monday that it would close three bakeries in St. Petersburg and one in Moscow. The bakeries have employed about 2,300 people and generated a turnover of about EUR 157 million, which is about 13 percent of the total turnover of the food company.
“We see no solution but to withdraw from Russia. Russia’s attack on Ukraine is an aggression with tragic consequences throughout the region. said Christoph VitzthumCEO of Fazer.
Paulig as well stated that it is withdrawing from Russia, leaving behind a 200-employee coffee roastery plant in Tver, a city about 180 kilometers north of Moscow. Russia and the surrounding countries account for about five percent of the Finnish coffee producer’s turnover.
The process, it assured, is designed to take into account its customers, employees and Russian legislation.
Valio also announced that it will close its business in Russia on Monday. The Finnish dairy giant has a processed cheese factory outside Moscow, as well as contract manufacturing partners and sales offices in Moscow and St. Petersburg. Its Russian operations employ about 400 people and have an annual turnover of EUR 85 million.
“We are sharply bringing Russia’s attack on independent Ukraine. Ethically, Valio cannot continue to operate in Russia. stated Annika HurmeValio’s President and CEO.
President Vladimir PutinThe attack on Ukraine has triggered an unprecedented corporate coercion from Russia. On Tuesday, the list of companies retiring or going out of business grew, including Coca Cola, Levi Strauss, McDonald’s, Pepsi and Starbucks.
Dismissals could lead to the dismissal of hundreds of thousands of people.
Andrei BelousovRussia’s first deputy prime minister, on Friday stated that a company that goes out of business and lay off staff in the country is deliberately sentenced to bankruptcy, leading to administrative and possibly criminal liability under Russian insolvency law.
He added that companies can also continue to operate or temporarily transfer their holdings to Russian partners.
Aleksi Teivainen – HT