Exclusive: Moscow plans to use seized US-owned company to feed Russian army, document shows
Exclusive: Moscow plans to use seized US-owned company to feed Russian army, document shows
LONDON, April 17 (Reuters) - Plans are afoot for an American-owned company seized by the Kremlin and placed under state control to be used to supply food to the Russian army, a document seen by Reuters showed, potentially threatening Moscow's warming relations with the U.S.
As the U.S. and the Kremlin negotiate to stop the war in Ukraine, the canned food maker Glavprodukt which was seized in October and is the only American-owned firm to be taken under state control, has been caught in the crosshairs.
U.S. Secretary of State Marco Rubio has said its treatment will be part of the conversation about resetting U.S.-Russia relations.
The seizure was necessary to ensure stable production, including for future supplies to the national guard and defence ministry, according to a letter, reviewed by Reuters, addressed to Russia's prosecutor general from Glavprodukt's new management.
Glavprodukt is now under the control of Russia's federal property management agency Rosimushchestvo having been seized from Los Angeles-based Leonid Smirnov.
Russia's industry and trade ministry and Rosimushchestvo did not respond to requests for comment on the state's plans for Glavprodukt and questions about its new management.
More: 'Everybody's to blame': Trump accuses Zelenskyy of starting Russia's war on Ukraine
Russian prosecutors have accused Smirnov and companies controlled by him of moving about 1.38 billion roubles ($17 million) out of Russia from 2022 to 2024, the RBC daily reported in March.
On March 12, Glavprodukt's assets were seized by the Moscow Arbitration Court at the request of the prosecutor general's office. A hearing is scheduled for April 18. Smirnov denies wrongdoing and says the lawsuit is a "Russian-style corporate raid" to steal his company.
The prosecutor general did not immediately respond to a request for comment.
About a dozen European companies have had their Russian subsidiaries expropriated by presidential decree, including Danish brewer Carlsberg and Finnish utility Fortum and the Kremlin has warned of more asset seizures.
The Ukraine invasion was expected to be a quick operation, but the war has now stretched to more than three years, seeing Russia hike defence spending and secure tighter control of strategic assets. In 2022, Russia was scrambling for military supplies, including food.
WHO STANDS TO GAIN FROM SEIZURE?
The letter reviewed by Reuters shines a light on the people standing to gain from the expropriation. It said that Rosimushchestvo appointed Glavprodukt's new director general at the request of food producer Druzhba Narodov.
Druzhba Narodov was the sole supplier to Russia's national guard for 2019-20, according to a 2018 press release.
A person familiar with the matter said that Glavprodukt never previously supplied Russia's army.
A 2018 investigation by late opposition politician Alexei Navalny's Anti-Corruption Fund revealed that then President Dmitry Medvedev had in 2017 signed off on Druzhba Narodov becoming the national guard's sole supplier.
Ownership information for Druzhba Narodov is classified, but Russian newspaper Kommersant reported in 2022, citing then publicly available information on Russia's EGRUL corporate registry, that entities connected to agriculture holding 'Agrocomplex named after N. I. Tkachev' had acquired Druzhba Narodov.
More: Kremlin says instant results not possible after Trump demands Ukraine progress
Reuters could not independently verify that as the information is now classified, but the Agrocomplex holding referred to, and Druzhba Narodov, share the same agrocomplex.ru domain name for some email addresses, according to their websites and filings from Russia's Spark corporate registry.
Druzhba Narodov and Agrocomplex did not respond to requests for comment.
The holding's ultimate owner is Alexander Tkachev, according to the company's 2025 independent audit filings, reviewed by Reuters.
Tkachev, sanctioned by the European Union in 2014 for his support of Moscow's annexation of Crimea, was appointed Russia's agriculture minister the following year, and is the holding company's board chairman, the filings show.
(Reporting by Anna Hirtenstein and Alexander Marrow in London;Editing by Elaine Hardcastle)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hamilton Spectator
23 minutes ago
- Hamilton Spectator
Election conspiracy theorist sticks by false 2020 claims in defamation trial
DENVER (AP) — One of the nation's most prominent election conspiracy theorists, MyPillow founder Mike Lindell, stuck by his false claims that the 2020 presidential election was stolen while testifying Monday during a defamation trial over statements he made about a former official for a leading voting equipment company. Taking the stand for the first time during the trial, Lindell denied making any statements he knew to be false about Eric Coomer, the former product strategy and security director for Denver-based Dominion Voting Systems . Among other things, Lindell accused Coomer of being 'a part of the biggest crime this world has ever seen.' Lindell also distanced himself from a story told by a conservative podcaster who accused Coomer of helping to rig the 2020 election. It was discussed during a 2021 symposium Lindell hosted to discuss election fraud. Lindell said he did not know about the story before it was discussed onstage at the event and only learned about it during the trial. Coomer said his career and life have been destroyed by statements Lindell made about him and allowed to be promoted through his online media platform, Frankspeech. During sometimes rambling testimony in federal court in Denver, Lindell painted himself as the victim of 'lawfare' — when people are sued to scare them into silence. Several conservative news organizations, including Fox News, Newsmax and One America News , have settled defamation lawsuits from voting machine companies over allegations that they promoted falsehoods about the 2020 presidential election . In 2021, Newsmax also apologized to Coomer for airing false allegations against him. Nevertheless, Lindell said he hoped his trial would lead people to look at what happened in the election and get rid of electronic voting machines , which have been targeted in a web of conspiracy theories. Reviews , recounts and audits in the battleground states where Trump contested his 2020 loss all affirmed Democrat Joe Biden's victory . Trump's own attorney general at the time said there was no evidence of widespread fraud, and Trump and his allies lost dozens of court cases seeking to overturn the result. Lindell said he never accused Coomer of rigging the election, but he testified that Coomer's claims led Newsmax to block him from being able to go on air to talk about voting machines. 'You're part of the biggest coverup of the biggest crime the world has ever seen,' he said to the Coomer lawyer questioning him, Charles Cain. Lindell said he used to be worth about $60 million before he started speaking out about the 2020 election, and now he has nothing and is $10 million in debt. 'I believe what you did to me and MyPillow was criminal,' he said to Cain during questioning. Both Cain and U.S. District Judge Nina Wang had to remind Lindell several times to listen to the questions and only provide the answers to them, rather than head off on tangents. During the trial, Coomer's attorneys have tried to show how their client's life was devastated by the series of conspiracy theories about him. Lindell was comparatively late to seize on Coomer, not mentioning him until February 2021, well after his name had been circulated by other Trump partisans. Coomer said the conspiracy theories cost him his job, his mental health and the life he'd built and said Lindell's statements were the most distressing of all. He specifically pointed to a statement on May 9, 2021, when Lindell described what he believed Coomer had done as 'treason.' Asked by his attorney what he wants out of the trial, Coomer said he would like an apology, compensation and 'a chance of rehabilitating my public image.' Lindell's attorneys argued that Coomer's reputation was already in tatters by the time Lindell mentioned him — partly because of Coomer's own Facebook posts disparaging Trump, which the former Dominion employee acknowledged were 'hyperbolic' and had been a mistake. 'Your reputation was shattered long before Mr. Lindell said a word about you,' Chris Katchouroff said to Coomer. Katchouroff noted that Lindell also is known for making hyperbolic statements and that what he said about Coomer was simply the result of his sincere concern over vote-rigging in the 2020 presidential election — a claim for which there is no evidence. ___ Associated Press writer Nicholas Riccardi contributed to this report. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Yahoo
26 minutes ago
- Yahoo
Stocks rise, dollar tentative ahead of US-China talks outcome
By Rae Wee and Johann M Cherian SINGAPORE (Reuters) - Stocks were buoyant and the dollar remained on guard on Tuesday as trade talks between the United States and China were set to extend to a second day, with tentative signs tensions between the world's two largest economies could be easing. U.S. President Donald Trump put a positive spin on the talks at Lancaster House in London, which wrapped up for the night on Monday and were set to resume at 0900 GMT on Tuesday. "The fact that we're still up here near record highs, does suggest that we are seeing the market accept what has been said by Trump and when you look at some of the other comments from Lutnick and Bessent, to me it seems to suggest that they are relatively happy with the progress," said Tony Sycamore, a market analyst at IG. "But the market always likes to see some concrete announcements." As Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer were set to meet for the second day with their Chinese counterparts, much of investors' focus has been on the progress of the talks. Any progress in the negotiations is likely to provide relief to markets given Trump's chaotic tariffs and swings in Sino-U.S. trade ties have undermined the world's two biggest economies and hobbled global growth. Stocks advanced in Asia, extending their rise from the start of the week. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5%, while Nasdaq futures gained 0.62%. S&P 500 futures edged 0.43% higher. EUROSTOXX 50 futures and FTSE futures both added roughly 0.1% each. In Tokyo, attention was also on the Japanese government bond (JGB) market, following news that Japan is considering buying back some super-long government bonds issued in the past at low interest rates. The yield on the 10-year JGB fell one basis point to 1.46% in early trade, while the 30-year yield slid 5 bps to 2.86%. Yields on super-long JGBs rose to record levels last month due to dwindling demand from traditional buyers such as life insurers, and jitters over steadily rising debt levels globally. "The volatility at the super-long segment of the curve stems from a supply-demand imbalance that has been brewing since the BOJ embarked on balance sheet normalisation," said Justin Heng, APAC rates strategist at HSBC Global Investment Research. Japanese Finance Minister Katsunobu Kato said on Tuesday the government will conduct appropriate debt management policies while communicating closely with market participants. In currencies, the dollar attempted to regain its footing after falling on Monday. Against the yen, the dollar was up 0.45% to 145.25. The euro fell 0.28% to $1.1387 while sterling slipped 0.2% to $1.3523. Trump's erratic trade policies and worries over Washington's growing debt pile have dented investor confidence in U.S. assets, in turn undermining the dollar, which has already fallen more than 8% for the year. The next test for the greenback will be on Wednesday, when U.S. inflation data comes due. Expectations are for core consumer prices to have picked up slightly in May, which could push back against bets of imminent Federal Reserve rate cuts. The producer price index (PPI) report will be released a day later. "May's U.S. CPI and PPI data will be scrutinised for signs of lingering inflationary pressures," said Convera's FX and macro strategist Kevin Ford. "If core CPI remains elevated, expectations for rate cuts could be pushed beyond the June 18 FOMC meeting." Traders see the Fed keeping rates on hold at its policy meeting next week, but have priced in roughly 44 bps worth of easing by December. In the oil market, prices edged up, with Brent crude futures gaining 0.24% to $67.20 a barrel. [O/R] U.S. West Texas Intermediate crude was last up 0.25% at $65.45 per barrel after hitting a more than two-month high earlier in the session. Spot gold fell 0.5% to $3,310.40 an ounce. [GOL/] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30 minutes ago
- Yahoo
Election conspiracy theorist sticks by false 2020 claims in defamation trial
DENVER (AP) — One of the nation's most prominent election conspiracy theorists, MyPillow founder Mike Lindell, stuck by his false claims that the 2020 presidential election was stolen while testifying Monday during a defamation trial over statements he made about a former official for a leading voting equipment company. Taking the stand for the first time during the trial, Lindell denied making any statements he knew to be false about Eric Coomer, the former product strategy and security director for Denver-based Dominion Voting Systems. Among other things, Lindell accused Coomer of being 'a part of the biggest crime this world has ever seen." Lindell also distanced himself from a story told by a conservative podcaster who accused Coomer of helping to rig the 2020 election. It was discussed during a 2021 symposium Lindell hosted to discuss election fraud. Lindell said he did not know about the story before it was discussed onstage at the event and only learned about it during the trial. Coomer said his career and life have been destroyed by statements Lindell made about him and allowed to be promoted through his online media platform, Frankspeech. During sometimes rambling testimony in federal court in Denver, Lindell painted himself as the victim of 'lawfare' — when people are sued to scare them into silence. Several conservative news organizations, including Fox News,Newsmax and One America News, have settled defamation lawsuits from voting machine companies over allegations that they promoted falsehoods about the 2020 presidential election. In 2021, Newsmax also apologized to Coomer for airing false allegations against him. Nevertheless, Lindell said he hoped his trial would lead people to look at what happened in the election and get rid of electronic voting machines, which have been targeted in a web of conspiracy theories. Reviews, recounts and audits in the battleground states where Trump contested his 2020 loss all affirmed Democrat Joe Biden's victory. Trump's own attorney general at the time said there was no evidence of widespread fraud, and Trump and his allies lost dozens of court cases seeking to overturn the result. Lindell said he never accused Coomer of rigging the election, but he testified that Coomer's claims led Newsmax to block him from being able to go on air to talk about voting machines. 'You're part of the biggest coverup of the biggest crime the world has ever seen,' he said to the Coomer lawyer questioning him, Charles Cain. Lindell said he used to be worth about $60 million before he started speaking out about the 2020 election, and now he has nothing and is $10 million in debt. 'I believe what you did to me and MyPillow was criminal,' he said to Cain during questioning. Both Cain and U.S. District Judge Nina Wang had to remind Lindell several times to listen to the questions and only provide the answers to them, rather than head off on tangents. During the trial, Coomer's attorneys have tried to show how their client's life was devastated by the series of conspiracy theories about him. Lindell was comparatively late to seize on Coomer, not mentioning him until February 2021, well after his name had been circulated by other Trump partisans. Coomer said the conspiracy theories cost him his job, his mental health and the life he'd built and said Lindell's statements were the most distressing of all. He specifically pointed to a statement on May 9, 2021, when Lindell described what he believed Coomer had done as 'treason.' Asked by his attorney what he wants out of the trial, Coomer said he would like an apology, compensation and 'a chance of rehabilitating my public image.' Lindell's attorneys argued that Coomer's reputation was already in tatters by the time Lindell mentioned him — partly because of Coomer's own Facebook posts disparaging Trump, which the former Dominion employee acknowledged were 'hyperbolic' and had been a mistake. 'Your reputation was shattered long before Mr. Lindell said a word about you,' Chris Katchouroff said to Coomer. Katchouroff noted that Lindell also is known for making hyperbolic statements and that what he said about Coomer was simply the result of his sincere concern over vote-rigging in the 2020 presidential election — a claim for which there is no evidence. ___ Associated Press writer Nicholas Riccardi contributed to this report.
