Russian court hands US-owned food company's assets to the state

Free Malaysia Today

5 days ago

Since being placed under Russian state management, Glavprodukt's sales have dropped sharply. (The Moscow Times)
MOSCOW : A Moscow court has ruled that the assets of US-owned canned food company Glavprodukt be handed over to the Russian state, the TASS news agency reported late on Friday, following a months-long legal tussle over the company.
One participant in the court proceedings, who declined to be named, confirmed to Reuters yesterday that the court had satisfied the prosecution's claim in full with immediate effect after a six-hour court session.
The seizure of Glavprodukt, the only US company Moscow has seized, coincides with stalled attempts to reset US-Russian relations.
Glavprodukt and other assets ultimately owned by US company Universal Beverage and founder Leonid Smirnov were placed under temporary state management by presidential decree in October 2024.
Prosecutors subsequently sought to justify the seizure by arguing the measure was necessary to ensure a stable food supply in Russia, according to a letter seen by Reuters in April.
'The court ruled that the general prosecutor's case on the seizure of Glavprodukt assets and property of its head Smirnov in favour of the state be satisfied in full,' TASS quoted the court as saying. 'The decision comes into force immediately'.
Court filings showed Universal Beverage had applied for a postponement of proceedings, but no ruling was specified.
The court did not immediately respond to a request for comment.
'The decision made violates the law of Russia.
'Steps will be taken, and some have already been taken, to protect our interests, not only in Russian courts but also in American courts as well as international courts,' Smirnov told Reuters.
'Our efforts in Washington definitely will be accelerated,' he added.
Smirnov said he plans to appeal the decision in Russian courts.
He has already begun legal proceedings in the US state of Arkansas, where Alexander Tkachev has business interests.
Tkachev is a former agriculture minister and the ultimate owner of Druzhba Narodov, the company which requested the Kremlin appoint new management at Glavprodukt, Reuters reported in April.
Since being placed under state management, Glavprodukt's sales have dropped sharply, and it has posted regular monthly losses, according to documents seen by Reuters last week.
The new management team plans to boost dwindling sales with exports to China and North Korea, according to documents reviewed by Reuters and people familiar with the matter.