Moscow promises to closely monitor foreign businesses that return to Russia
ST PETERSBURG, Russia, June 20 (Reuters) - Russia's Prosecutor General Igor Krasnov, who has led the state's efforts to seize property worth 2.4 trillion roubles ($31 billion), on Friday said foreign companies that return to the country would be watched closely to ensure Russia benefited.
Moscow has placed around a dozen foreign-owned assets under state management in the more than three years that Russia has been fighting in Ukraine and prosecutors have stepped up the seizure of domestic assets through the courts this year.
Now, as the economy begins to slow after two years of growth fuelled by high military spending, Russian officials are trying to find the balance between insulating the economy from exposure to Western nations it considers unfriendly and the need for growth to keep funding the conflict in Ukraine.
"We will closely follow the government's actions," Krasnov said. "That is, who will come... on what terms they will come."
"We will definitely look at making sure that the conditions under which our (Russian) business operates are better (when Western business returns)," Krasnov said.
It must be profitable for Russia's own firms, he said.
Russia is prioritising domestic companies, some of whom have taken market share vacated by Western firms, such as McDonald's (MCD.N), opens new tab and Unilever (ULVR.L), opens new tab, that have left since Russia launched the conflict in Ukraine.
President Vladimir Putin on Friday said the Russian economy could not develop effectively without investment and said Moscow would create conditions to make foreign partners feel comfortable.
He said Russian companies should fulfil legally binding buybacks with foreign companies, but stressed that Russia would support measures that benefit its own interests.
"If someone left for political reasons, under pressure from their own political elites, their countries, then this means they are unreliable partners," Putin said.
Kirill Dmitriev, chief of Russia's sovereign wealth fund, has said that U.S. companies are in talks to return to Russia, although lawyers and investors have told Reuters that sanctions must be lifted before any significant influx can take place.
Finance Minister Anton Siluanov told the Izvestia daily on Friday that no foreign companies had yet submitted requests to return.
"There are no applications for entry yet, but I feel that the situation is changing and interest in investing in Russia is growing," Siluanov said.
The sparse Western presence at Russia's forum suggests otherwise, with some analysts also pointing to concerns about property rights.
Two sources from Russia's energy and banking sectors said some companies may be interested in returning as there could be money to be made, but not in the current situation.
Assets owned by French yoghurt maker Danone (DANO.PA), opens new tab and Danish brewer Carlsberg (CARLb.CO), opens new tab are among the foreign assets taken under state control and sold to Kremlin-friendly buyers since 2022.
($1 = 78.4955 roubles)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News
an hour ago
- Sky News
Putin says 'Ukraine is ours' and threatens nuclear strike - showing how he feels about Trump
He may have been speaking at an economic forum, but that didn't stop Vladimir Putin from issuing his most hawkish comments on Ukraine in a very long time. During a Q&A at Russia's flagship investment event in St Petersburg, the Kremlin leader was asked what his end game was in the conflict. He replied: "I have said many times that I consider the Russian and Ukrainian people to be one nation. In this sense, all of Ukraine is ours." The answer received rapturous applause from an auditorium full of fawning politicians and business figures. And there was more. "There is an old rule," he said. "'Where a Russian soldier sets foot, that is ours'." In short, he was saying that he wants the whole lot. The comments came as a surprise because they are in sharp contrast to the Kremlin's recent rhetoric. Ever since Donald Trump began his push for a peace deal, Moscow has adopted a softer tone, more conciliatory - in an apparent attempt to show Washington that it is interested in a settlement. But there was none of that kind of language here. Quite the opposite. The Russian president even, for the first time in months, threatened a nuclear strike on Ukraine. Asked how Moscow would respond if Kyiv used a dirty bomb against Russian forces, he promised "catastrophic" consequences for his enemy. "This would be a colossal mistake on the part of those whom we call neo-Nazis on the territory of today's Ukraine," he said. "It could be their last mistake. "We always respond and respond in kind. Therefore, our response will be very tough." The Kremlin's nuclear sabre-rattling was an almost weekly feature during the last days of the Biden administration, but the sabres stilled when Mr Trump came to power. But now, all of a sudden, he's returned to it. It felt like a very deliberate message from Vladimir Putin that, despite peace talks, Russia has no intention of backing down, neither on the battlefield nor at the negotiating table. I think it shows that Moscow is not too worried about upsetting Donald Trump. The American leader appears to have distanced himself from trying to mediate the conflict, but still seems to be pursuing warmer ties with Moscow.
The Independent
an hour ago
- The Independent
Stunning map shows the lengths pilots go through to avoid conflict zones
A stunning map of current global flight routes has shown the lengths pilots have to go through to avoid conflict zones. As the Russia-Ukraine war rages on and the Israel-Iran conflict intensifies, the world has become more chaotic, and so has its airspace. A live flight tracking map from Flightradar24 showed planes bustling in western Europe and most of Asia. But there are startling holes in the map, which happen to be where the world's major conflicts are currently taking place. Ukraine had no planes in its airspace, and there were very few planes flying over Russia late Friday afternoon, according to Flightradar24's map. Some Middle Eastern countries, including Israel, Iran and the surrounding nations of Lebanon, Syria, Iraq and Kuwait, also had no flights coming in or out based on the map. The lack of air travel can be linked to the air strikes Russia and Ukraine as well as Israel and Iran have been launching against each other in respective conflicts. It's been more than three years since Russian President Vladimir Putin launched a full-scale invasion of Ukraine. The missile and drone strikes and their counterattacks have been non-stop. Earlier this week, Russia launched an overnight attack on Kyiv, killing 28 people and injuring over 100 more, The Associated Press reported, citing local officials. Israel had already been at war with Hamas when it struck Iran's nuclear facilities and hit military targets in the region last Friday. The attacks killed several of Tehran's top military leaders and leading nuclear scientists, and Iran subsequently launched heavy retaliatory strikes against Israel. Besides man-made conflict, natural disasters can also make the jobs of pilots more difficult. 'Airspace closures have become quite common,' Singapore -based aviation consultant Brendan Sobie told CNN. 'It's almost like the new normal for airlines to have to navigate this kind of thing.'
NBC News
3 hours ago
- NBC News
Two weeks' notice: Trump's deadline on Iran is a familiar one
President Donald Trump's two-week timeline to decide on whether the U.S. will strike Iran's nuclear sites is a familiar one — it's one he's repeatedly used since his first term in office. 'Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks,' he said in a statement issued through White House press secretary Karoline Leavitt. In the last two months, Trump has promised action on questions or decisions in 'two weeks' over a dozen times — and he used the same timeline repeatedly during his first term in office. 'We're going to be announcing something, I would say over the next two or three weeks, that will be phenomenal in terms of tax and developing our aviation infrastructure,' Trump said of tax overhaul plans on Feb. 9, 2017. He released a one-page outline of the plan 11 weeks later, according to a Bloomberg review that year. He went on to repeatedly cite the time frame for impending actions on health care and infrastructure that never materialized during his first four years in office. Trump's use of the timing prediction has accelerated in recent weeks — and he's used it on items ranging from trade deals and tariffs to the Russia-Ukraine conflict. Much of what he's predicted hasn't come to pass, with questions he's said he'd answer remaining unanswered. The White House did not immediately respond to a request for comment. Two weeks to set rates on tariffs Speaking to reporters in the Oval Office on April 23, Trump said the country was going to have "great deals" on trade. "And by the way, if we don't have a deal with a company or a country, we're going to set the tariff. We just set the tariff. It's something that we think — that will happen, I say, over the next couple of weeks, wouldn't you say? I think so," Trump said. "Over the next two, three weeks. We'll be setting the number. And we're going to pick — could be for China too." Two weeks to decide on continued aid for Ukraine During an April 24 Oval Office meeting with Norwegian Prime Minister Jonas Gahr Støre, Trump was asked if he'd continued providing military intelligence and aid to Ukraine if there was no peace deal with Russia. "Let's see what happens. I think we're going to make a deal, and if we make a deal, it'll be wonderful. We won't have to worry about your question. You can ask that question in two weeks, and we'll see. But I think we're getting very close," Trump said. Two weeks to find out if Trump trusts Putin Asked by reporters on April 27 if he trusted Russian President Vladimir Putin, given the ramped-up attacks on Ukraine while Trump was calling for a ceasefire, the president said, 'We'll let you know in about two weeks.' Two weeks to determine Putin's path in Ukraine In an interview that aired May 4 on NBC's " Meet the Press," Trump was asked by moderator Kristen Welker if he'd misread Putin's position on Russia's war with Ukraine. "No, I'll tell you about in a month from now, or two weeks from now. I have no idea. I can tell you this, he's ... his ambition was stopped to a large extent when he saw that it was me that was now leading the charge," Trump said. Two weeks to set a trade deal with China Trump told reporters on May 4 on Air Force One that he'd be "setting" a trade deal with China. "At some point in the next two weeks or three weeks, I'm gonna be setting the deal. I'm gonna say that such and such a country has had a tremendous trade surplus, surplus their way, with us. They've taken advantage of us in various ways," Trump said. Two weeks to announce tariffs on pharmaceutical companies Asked on May 5 in the Oval Office if he'd made any determination on tariff rates and timing for pharmaceutical companies, Trump said, "I have. I'll announce it over the next two weeks." Asked about those same tariffs on Tuesday, Trump said, "We're going to be doing pharmaceuticals very soon." Two weeks to sign trade deals During a May 6 meeting with Canadian Prime Minister Mark Carney in the Oval Office, Trump suggested a number of trade deals were imminent. "We also have a situation, because everyone says, when, when? When are you going to sign deals? We don't have to sign deals. We could sign 25 deals right now, Howard [Lutnick, the commerce secretary], if we wanted. We don't have to sign deals. They have to sign deals with us. They want a piece of our market. We don't want a piece of their market," Trump said. "So we can just sit down, and I'll do this at some point over the next two weeks." Two weeks to meet Putin and end the war Trump was asked in Abu Dhabi on May 16 when he would meet with Putin to discuss ending the war. "As soon as we can set it up," Trump replied. "And I think in, uh, two or three weeks we could have it be a much, much safer place." Two weeks to set trade terms At a May 16 business roundtable in Abu Dhabi, Trump said he'd soon be setting the terms of the trade deals he wanted, and that Lutnick and Treasury Secretary Scott Bessent would be notifying trading partners. "So at a certain point over the next two to three weeks, I think Scott and Howard will be sending letters out, essentially telling people it won't be very fair. But we'll be telling people what they'll be paying to do business in the United States. They'll essentially be paying to be doing business in the United States," the president said. Two weeks to determine if Zelenskyy is doing a good job Asked on May 19 in the Oval Office if Ukrainian President Volodymyr Zelenskyy was doing enough to help end the war, Trump said, "I'd rather tell you in about two weeks from now because I can't say yes or no. "I think — look, he's a strong person, Zelenskyy, a strong guy and he's not the easiest person to deal with, but I think that he wants to stop. It's a very bad — it's a very bad thing that's happening over there. I think he wants to stop, but I could answer that question better in two weeks or four weeks from now." Two weeks to determine if Putin wants to end the war Trump was asked again if he believed Putin wanted to end the war while taking questions from reporters in the Oval Office on May 28. "I can't tell you that, but I'll let you know in about two weeks, within two weeks. We're going to find out very soon. We're going to find out whether or not he's tapping us along or not. And if he is, we'll respond a little bit differently. But it will take about a week and a half, two weeks," Trump said. Two weeks to send out trade deal offers After touting a preliminary trade deal with China, Trump was asked at the Kennedy Center which country he expected to sign a deal with next. "Well, we're dealing with Japan. We're dealing with South Korea. We're dealing with a lot of them. We're dealing with about 15 countries. But as you know, we have about 150 plus and you can't do that. So we're going to be sending letters out in about a week and a half, two weeks, to countries and telling them what the deal is, like I did with E.U.," Trump responded. Two weeks to decide whether to attack Iran Press secretary Karoline Leavitt began her briefing on Thursday by discussing potential U.S. involvement in Israel's conflict with Iran. "Regarding the ongoing situation in Iran, I know there has been a lot of speculation amongst all of you in the media regarding the president's decision-making and whether or not the United States will be directly involved," she said. "In light of that news, I have a message directly from the president, and I quote, 'Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks.' That's a quote directly from the president for all of you today."
