logo
Russia raises domestic asset seizure stakes with grain trader, Moscow airport grab

Russia raises domestic asset seizure stakes with grain trader, Moscow airport grab

Reuters07-02-2025

MOSCOW, Feb 7 (Reuters) - Russia is quickening the pace of domestic asset seizures this year after courts ruled last week that a leading grain trader, Moscow's sprawling Domodedovo airport and strategic warehouse assets be handed over to the state.
Foreign companies have grappled with the risk of state seizure ever since Russia sent troops into Ukraine in February 2022, but Moscow, under the auspices of strategic stability and domestic security, has increasingly brought domestic assets too into the crosshairs.
Grains trading house Rodnie Polya, Moscow's Domodedovo Airport and all 16 warehouses belonging to Russia's largest warehouse owner Raven Russia were all placed under state management on January 31, court documents showed and sources said.
The General Prosecutor's office did not respond to Reuters requests for comment on the cases.
Lawyers Reuters spoke to said the number of cases filed on the grounds of foreign ownership would likely increase in strategic sectors of the economy, and agreed that the rules of the game were changing for any businesses with non-Russian links.
"This is a signal to owners with dual citizenship, especially from unfriendly countries," Artem Zhavoronkov, a partner at Russian law firm Nordic Star, told Reuters. "Either renounce your foreign citizenship or lose your business in Russia."
The Kremlin typically refers to countries that have imposed sanctions on Russia over its actions in Ukraine as "unfriendly".
Rodnie Polya controlled 14% of Russia's grain exports just a year ago, but has steadily had its market share squeezed.
Owner Petr Khodykin this week surrendered his St Kitts and Nevis passport and a residency permit for the United Arab Emirates in a last-ditch attempt to cling on to his business, a source close to the company told Reuters.
The move may not have worked. Rodnie Polya's assets were handed to Rosimushchestvo, Russia's federal property management agency, on February 5, Russian tax filings show.
Rodnie Polya said its lawyers were considering various methods of defence, including appealing to the constitutional court.
"Petr Khodykin is looking for a fair trial for a Russian citizen and is trying to draw the authorities' attention to the fact that his story is completely different from cases when the General Prosecutor is indeed defending the interests of the state and its security," Rodnie Polya said.
WIDESPREAD ASSET SEIZURE
More than 1 trillion roubles' ($10.34 billion) worth of strategic enterprises and assets, seen as critical for developing Russia's economy and defence capabilities, were transferred to state ownership by Russian courts in 2023, Prosecutor General Igor Krasnov said in March 2024.
While several foreign-owned assets, such as those of Danone and Carlsberg were seized by presidential decree before deals to hand-picked buyers were forced through, the General Prosecutor has used the courts.
Last April, Russian President Vladimir Putin said assets would only be seized when Russia's national security was a stake.
But authorities have been constantly improvising in terms of asset seizure, a person whose business was taken over by the state told Reuters.
When people see that a method is working it quickly starts being employed more widely, the person said, with government agencies keen to show off their success in bringing assets into the state's portfolio.
Any company with assets of strategic importance to Russia or that fails to invest in its businesses in the country could be at risk, according to a presentation, seen by Reuters, prepared by a law firm to advise clients.
Prosecutors on February 5 filed a similar case against oil services company Borets, court filings showed. Borets' ultimate holding company is a UAE entity, corporate filings show.
Borets did not immediately respond to a request for comment.
'NEW RULES OF THE GAME'
A Russian agriculture source brushed aside concerns, seeing the seizure of Rodnie Polya as an isolated case that would not pose a wider threat to other agricultural firms.
Boris Brusko, managing partner at law firm I. Helory, said the Rodnie Polya case showed the state was seeking to increase control over the corporate activity of assets it deemed strategic.
"This is the state's establishment of new rules of the game in the current political situation for protecting its strategic interests," Brusko told Reuters.
Another agricultural source said the speed with which the court moved was surprising, with lawyers given barely any time to get acquainted with all the case files.
The speed of the decisions came as an unpleasant surprise, said Yevgeny Nadorshin, an economist at PF Capital, suggesting that fiscal pressure could be behind the urgency, as a slowdown in economic growth and new U.S. sanctions could hurt Russia's revenues.
The principle of loyalty also could not be ignored, Nadorshin said, as "the wrong passport is the basis of suspicion of unfriendly foreign influence.
"Judging from the start of the year, (this process) seems to have intensified," Nadorshin said. "I have an uncomfortable feeling this is not the finale."
($1 = 96.7455 roubles)

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Ukraine soldier has 'Glory to Russia' burnt into skin by Putin's twisted thugs
Ukraine soldier has 'Glory to Russia' burnt into skin by Putin's twisted thugs

Daily Mirror

timean hour ago

  • Daily Mirror

Ukraine soldier has 'Glory to Russia' burnt into skin by Putin's twisted thugs

WARNING: GRAPHIC CONTENT The captured Ukrainian soldier is seen with the phrase 'Glory to Russia' branded on his skin in a new photograph, which intelligence services in Kyiv have confirmed as genuine A shocking new photograph shows a freed Ukrainian prisoner with 'Glory to Russia ' burnt into his skin by Vladimir Putin's troops. Ukraine 's intelligence services have confirmed the disturbing new image as genuine after it circulated online following the exchange of hundreds of soldiers and civilians this week. In the picture, a man is seen with severe burns to his abdomen, with the phrase deliberately branded on his body. He also has a tube inserted into his stomach. The prisoner swap between Russia and Ukraine took place after US-led efforts to broker a ceasefire between the two sides last month failed, with the deal emerging as one small area of cooperation amid a continuing bloody conflict. ‌ ‌ Confirming that the image of the branded soldier was genuine but dated from a previous POW swap, Andrii Yusov, spokesperson for Defence Intelligence of Ukraine, said yesterday: "Unfortunately, the photo is real. He wasn't in this exchange, but one of the earlier ones. "While examining him at a rehabilitation centre for soldiers, a doctor, overwhelmed by what he saw, took the photo and posted it online. This is evidence of what our defenders go through in captivity. "The photo speaks for itself. And it is imperative that not only Ukrainians see it – they know very well what the Russians are – but the whole world." On Monday, an outpouring of emotion was seen on in Chernyhiv region of northern Ukraine as troops draped in the national flag were paraded through streets, having suffered horrific treatment at the hands of their Russian captors. More prisoner swaps will be taking in a staggered process taking place over the coming days, President Volodymyr Zelenskyy and the Russian Defense Ministry said, although neither side has confirmed how many. ‌ Those who were swapped included wounded soldiers, as well as those under 25, Zelensky said. He said: "The process is quite complicated, there are many sensitive details, negotiations continue virtually every day." But in the hours before the prisoner exchange took place, Russia launched almost 500 drones at Ukraine in the biggest overnight drone bombardment of the three-year war. A total of 479 drones and 20 missiles of various types were fired at different parts of Ukraine from Sunday to Monday, according to the air force, which said the barrage targeted mainly central and western areas. Ukraine's air force said its air defences intercepted and destroyed 277 drones and 19 missiles, claiming only 10 drones or missiles hit their targets. Attacks have continued over the past 48 hours, with two people killed and 54 injured in Russian drone attacks on Kharkiv overnight. And on Tuesday, three people died and 13 were wounded after Russia hit Kyiv and Odesa with drones and missiles. A number of civilian targets were damaged, including a maternity ward and a cathedral.

Rising Asia temperatures bode well for US LNG export prospects
Rising Asia temperatures bode well for US LNG export prospects

Reuters

timean hour ago

  • Reuters

Rising Asia temperatures bode well for US LNG export prospects

LITTLETON, Colorado, June 11 (Reuters) - U.S. exports of LNG are already at record highs so far in 2025, but forecasts for above-average temperatures across key Asian import markets could lift them even higher this summer. Average temperatures for Japan, South Korea and China are all forecast to hold above normal through the end of August, likely boosting use of power-hungry air conditioners. That higher demand load will in turn spur utilities to lift generation from all available sources, including from natural gas plants fed mainly by imported liquefied natural gas (LNG). That upbeat demand outlook is good news for U.S. LNG exporters, who are riding a wave of strong demand from Europe but face a potential slowdown in European buying this summer. Temperatures across East Asia are already hovering above long-term averages, and are expected to continue trending higher over the next two months. Average temperatures in Japan - the second largest LNG importer after China in 2024 - are expected to register around 6% above the long-term average from now through the end of August, data from LSEG shows. South Korea, Taiwan, Hong Kong and several cities in China are forecast to register similar readings. As the northern hemisphere summer coincides with the rainy season across much of Asia, the forecasted hot temperatures are likely to be mixed with high humidity levels. That in turn will likely spur heavy use of air conditioning systems, which can push power demand levels sharply higher during heatwaves and strain regional power grids. Asia's electricity producers are used to the summer climb in electricity demand and adjust output levels accordingly. In 2024, average electricity demand during June, July and August - the hottest months of the year - was around 9% above the monthly average for the year as a whole. To accommodate that higher load, utilities lifted output from all power sources, but especially from fossil fuel plants which supply power that can be dispatched on command when output from renewable sources drops off. Both gas-fired and coal-fired generation across Asia during June, July and August last year averaged around 5% more than the 2024 monthly average, Ember data shows. To feed the higher demand for power anticipated during June, July and August, Asian LNG importers tend to book higher LNG volumes during May, June and July than during other months. Between 2021 and 2024, U.S. LNG exports to Asia during May, June and July averaged around 7.8 million metric tons a month, according to data from commodity intelligence firm Kpler. That compares to an average of 2.23 million tons a month to Asia overall for the 2021 to 2024 period, and underscores how important LNG is as a power fuel during the Asian summer. A key driver of potential Asian purchases will be the price of LNG, which needs to compete with coal in power generation and has recently proved too dear for many Asian consumers. U.S. LNG export prices have averaged around $8.54 per thousand cubic feet so far in 2025, up 35% from the 2024 average, according to data from LSEG. That said, any rise in Asian LNG purchases would likely come just as LNG orders by Europe tend to retreat to their annual lows, which could apply downward pressure to prices. Over the first half of 2025, European markets accounted for 70% of all U.S. LNG exports, Kpler data shows, while Asian markets accounted for just under 20%. Average monthly volumes of U.S. LNG dispatched to Europe during January to June were around 6 million tons, compared to around 1.6 million tons a month to Asia. A key caveat that will govern Europe's LNG appetite going forward is how quickly gas storage operators there want to replenish inventories, which were depleted over the past winter and must be restocked ahead of next winter. Currently, Europe's gas stockpiles are around half full, which compares to around 70% full at this time of year in 2023 and 2024, according to LSEG. If gas storage operators opt to restock as quickly as possible, then Europe's imports of LNG could remain quite strong over the coming months. But if Europe's storage firms opt instead to wait until the autumn to replenish stocks, or refill tanks from pipelined supplies, then Europe's LNG purchase volumes could drop sharply. Such a sudden wilt in European orders would likely trigger an aggressive markdown in prices, however, and in turn lure fresh buying interest in Asia where power firms are already primed to boost output. That suggests that overall U.S. LNG export volumes should remain fairly robust for the near term at least, regardless of where the buyers reside. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab.

Thousands attend candle-lit vigil for Austrian school shooting victims in Graz
Thousands attend candle-lit vigil for Austrian school shooting victims in Graz

Metro

timean hour ago

  • Metro

Thousands attend candle-lit vigil for Austrian school shooting victims in Graz

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Austrians held a candlelight vigil to mourn the country's deadliest mass shooting, which left eleven people dead. The country is reeling after yesterday, a former student of Borg Dreirschutzengasse Secondary School in Graz opened fire as students were taking exams. Eleven people have died so far from the shooting, with seven females and three males confirmed among the dead – the shooter killed himself in the bathroom. Yesterday evening, residents of Austria's second-largest city gathered in sombre silence to reflect. Thousands cried, prayed and stood watch over dozens of lit candles in the main town square. Attendee Felix Platzer told Reuters: 'When you hear about it, you have so much sympathy for the people, maybe you could have known someone. 'This is an example of solidarity, and you grieve together. Together it is easier to cope.' In a press conference after the shooting, Austrian Chancellor Christian Stocker said the country would enter three days of mourning, with the flag flown at half mast. 'That such a safe space was hit by such a violent act leaves us speechless,' he said. ''Today is about empathy. It's about cohesion, that we are there together for each other in a difficult hour.' Mario Kunasek, governor of Styria, said: 'Styria is mourning today, the green heart is crying. This is an unimaginable tragedy that happened this morning. 'This is so unfathomable. The lives of so many have changed dramatically today.' The shooter has been named as a 21-year-old man from Graz. Initial investigations have found he owned the guns legally. The suspect has not yet been named. More Trending Investigators found a farewell letter at the home of the suspected gunman, Austrian newspaper Krone has reported. Police reportedly raided his property yesterday afternoon and found the note, the contents of which are unknown. The suspect was a former student at the school and didn't finish his education there. He killed himself after committing the mass shooting. Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Three gunmen on the loose in Philadelphia after two shot dead in mass shooting MORE: At least 11 injured after gunman opens fire during boat party MORE: Eurovision winner JJ leads calls for Israel to be banned from song contest

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store