logo
Russia to feed its troops using company seized from US

Russia to feed its troops using company seized from US

Yahoo17-04-2025
Russia is planning to feed its troops with food from a seized American company, in a move that threatens to spoil Moscow's improving relations with Washington.
Glavprodukt, a major producer of canned meat and vegetables, was brought under Kremlin control in October as the only US company in Vladimir Putin's hands.
The seizure was ordered to ensure stable production and future supplies to the Russian military, a letter from the company's new Russian management to the prosecutor general's office has revealed.
First reported by Reuters, the document states that Glavprodukt's produce would be sent to the Russian ministry of defence as well as the national guard, a militarised force that reports directly to Putin.
The company is not believed to have produced food for the Russian military while it was under US control.
It comes after Marco Rubio, the US secretary of state, hinted last month that Glavprodukt's seizure would be discussed during negotiations aimed at normalising US-Russia relations.
'There are opportunities to work together, and obviously that's going to entail talking about not just Russian assets that have been seized by the Europeans or the US or what have you, but also American companies that have been hurt,' he said in an interview with Right-wing Breitbart News Network.
Following the seizure in October, the company's assets were confiscated on March 12 following a court order from the prosecutor general's office.
Russian prosecutors accused Leonid Smirnov, Glavprodukt's American owner who fled the Soviet Union in the 1970s, of moving 1.38 billion roubles (£12.8 million) out of Russia from 2022 to 2024.
Mr Smirnov described the accusations as a 'Russian-style corporate raid' and denies any wrongdoing.
The letter seen by Reuters confirmed that Glavprodukt's new Russian director was named at the request of a company called Druzhba Narodov, which formerly supplied food to the national guard.
Mr Smirnov has urged Donald Trump to help save his $200 million business, which is regarded as the Russian equivalent of Heinz.
'We basically have this company being destroyed on a daily basis,' he told the New York Post.
'I am asking president Trump to get involved and save my company, save all other American companies.'
The Moscow-based company, which employs 1,000 people across three factories, began making losses for the first time in its history after it was seized.
Mr Smirnov estimates that it has lost around 30 per cent of its value since it was taken over by the Kremlin.
Roughly a dozen companies have been placed under 'temporary management' by Russia over the past three years, but these have mostly been European.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nvidia's China Nightmare? H20 Chip Faces Backdoor Allegations in High-Stakes Trade Showdown
Nvidia's China Nightmare? H20 Chip Faces Backdoor Allegations in High-Stakes Trade Showdown

Yahoo

time27 minutes ago

  • Yahoo

Nvidia's China Nightmare? H20 Chip Faces Backdoor Allegations in High-Stakes Trade Showdown

China's been turning up the heat on Nvidia (NASDAQ:NVDA), and not in a good way. This week, the country's top internet watchdog summoned Nvidia reps over what it calls serious security risks tied to the H20 chipa product Nvidia designed specifically to meet U.S. export rules. State media pulled no punches either. In a commentary published Friday, the People's Daily warned of potential chip backdoors triggering a nightmare, saying it couldn't allow infected semiconductors into its digital infrastructure. Nvidia responded firmly: Cybersecurity is critically important to us, adding that its chips don't contain any remote access pathways. Still, in today's geopolitical climate, that reassurance may not be enough. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Here's where things get messier. Just a few weeks ago, the U.S. agreed to lift restrictions on H20 sales to China as part of a broader deal involving rare-earth magnetsmaterials critical for everything from smartphones to fighter jets. Commerce Secretary Howard Lutnick had framed the H20 resumption as a meaningful breakthrough after bilateral talks in London, and Treasury Secretary Scott Bessent said the magnet issue was solved. But with Beijing now putting the H20 back under the microscope, it's unclear whether Nvidia has actually received the licenses it needs to ship the chips. And if China decides the H20 isn't up to pareither technically or politicallythose sales may stall before they even start. Meanwhile, CEO Jensen Huang has been walking a tightrope. Fresh off a high-profile visit to Beijing, Huang praised China's AI momentum and national champions like DeepSeek, all while pushing back on the idea that Nvidia would ever install surveillance backdoors into its products. He called the suggestion not only false, but bad business. Still, the reality is this: Nvidia's H20, already weaker than its flagship GPUs, now faces a political test that could matter more than its specs. Investors watching the tech standoff might want to pay close attention to what happens nextbecause this chip is turning into a geopolitical bargaining chip. This article first appeared on GuruFocus. Sign in to access your portfolio

US defense bill proposes examination of Apple display supplier
US defense bill proposes examination of Apple display supplier

Yahoo

time27 minutes ago

  • Yahoo

US defense bill proposes examination of Apple display supplier

By Stephen Nellis SAN FRANCISCO (Reuters) -A measure added into a massive U.S. defense spending bill in recent weeks will, if passed, ask the Pentagon to determine whether one of Apple's display suppliers should be listed as a Chinese military company. Being on the list does not block companies from doing business in the U.S. but will in coming years block them from being part of the U.S. military's supply chain. The bill, known as the National Defense Authorization Act, was approved in July by key committees in both houses of the U.S. Congress. The final bill, considered a "must-pass" because it funds the U.S. military, is expected to become law later in the year. When the bill was approved by the U.S. House of Representatives Armed Services Committee, a newly added amendment for the first time asked the U.S. Defense Department to consider whether BOE Technology Group Co, listed on Apple's official suppliers list, should be added to a list of firms that allegedly aid China's military. BOE and Apple did not respond to requests for comment. Craig Singleton, a China expert at the Foundation for Defense of Democracies, a Washington think-tank, said Beijing had offered billions of dollars in subsidies, tax breaks and loans to help firms such as BOE dominate global panel production. "This creates a single‑source vulnerability that could be easily exploited to disrupt or degrade U.S. military operations, not to mention undermine commercial supply chains, during a conflict or period of heightened bilateral tension with Beijing," Singleton added. A study published last month by New York-based NERA Economic Consulting and commissioned by BOE's U.S. subsidiary found that the display industry, which includes major Korean players such as Samsung Electronics and LG Electronics, remains highly competitive, with no single player capable of significantly affecting global prices. "There is no credible risk of a supply chain disruption by mainland China display manufacturers," the report said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store