Latest news with #Glavproduct
Yahoo
17-04-2025
- Business
- Yahoo
Kremlin to reportedly use seized US food company to supply Russian military
The Kremlin plans to use the American-owned food company Glavproduct, which it seized in October 2024, to supply canned goods to Russia's military, Reuters reported on April 17, citing internal documents. Glavproduct, a canned food producer originally founded by Los Angeles-based businessman Leonid Smirnov, is the only U.S. company to fall under Russian state control since the start of Russia's full-scale war against Ukraine. The asset seizure was needed to ensure stable production for future supplies to Russia's Defense Ministry and the National Guard, according to a letter from Glavproduct's new management to the Russian Prosecutor General's Office. The letter, seen by Reuters, also notes that Rosimushchestvo, Russia's federal property management agency, appointed a new CEO at the request of Druzhba Narodov, a food supplier with ties to Kremlin security forces. Druzhba Narodov previously served as the sole supplier to the Russian National Guard in 2019-2020, according to investigative reporting by Alexei Navalny's Anti-Corruption Foundation. The company is linked to former Russian Agriculture Minister Alexander Tkachov, who was sanctioned by the EU in 2014 over his support for Russia's annexation of Crimea. Join our community Support independent journalism in Ukraine. Join us in this fight. Support Us Russian prosecutors accuse Smirnov of illegally transferring $17 million out of Russia between 2022 and 2024. The Moscow Arbitration Court froze Glavproduct's assets on March 12. A hearing is scheduled for April 18. Smirnov, based in Los Angeles, denies wrongdoing and called the takeover a "Russian-style corporate raid." According to Reuters, Glavproduct had not previously supplied the Russian army. The dispute is unfolding as Washington and Moscow continue backchannel negotiations to end the war in Ukraine. U.S. Secretary of State Marco Rubio said Glavproduct's status would be part of broader talks to "reset relations" with Russia. Since 2023, more than a dozen foreign companies, including Carlsberg and Fortum, have had their Russian subsidiaries taken over by decree. In May 2024, Russian President Vladimir Putin signed a law allowing the Kremlin to identify and seize U.S.-owned property and securities as "compensation" for Western sanctions. As the war drags into its fourth year and Russia ramps up military spending, the Kremlin asserts greater control over strategic industries — including food production — to sustain its war effort. Read also: French court enforces $5 billion Crimea damages award against Russia in Naftogaz case We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Russia Today
26-02-2025
- Business
- Russia Today
US open to economic cooperation with Russia
The US and Russia could restore economic ties once the Ukraine conflict is resolved, US Secretary of State Marco Rubio has suggested. Speaking in an interview with Breitbart on Tuesday, Rubio noted that Moscow and Washington could discuss the economic and business domain, but only after they have ensured the smooth operations of each other's diplomatic missions and have resolved the Ukraine crisis. 'We have to invite them and see, okay, if you guys are serious about ending this thing, let's sit down and talk about it,' Rubio said. 'I think step three is, if we can end this conflict, what does US-Russian relations look like in the 21st century? Are there things we can work on together geopolitically or maybe even economically?' According to Rubio, Russia and the US have 'opportunities to work together' to achieve a 'reset' in relations which will 'entail talking about not just Russian assets that have been seized by America, by the Europeans… but also American companies that have been hurt.' He cautioned, however, that such negotiations remain distant. 'We're not at that step yet… We can't even really talk about those things or fix those things until we bring this war at least to some sort of enduring ceasefire – hopefully permanent.' Russian President Vladimir Putin signed a decree in 2023 allowing for the temporary takeover of assets belonging to Russia-based foreign companies from 'unfriendly' countries, with several Western companies affected. In October 2024, Russia temporarily nationalized the assets of Glavproduct, a major US-owned food producer. However, while US-Russian relations sank to historic lows under the administration of US President Joe Biden, his successor Donald Trump has signaled interest in restoring ties. Earlier this month, the two sides held high-profile talks in Saudi Arabia that focused on paving the way for resolving the Ukraine conflict and restoring bilateral ties. Trump has since indicated that Washington might explore joint ventures in Russia's mineral sector and suggested that sanctions on Moscow could be lifted 'at some point' as part of the broader Ukraine conflict settlement process. Putin said on Monday that Russia and the US are in talks about 'major' joint economic projects, adding that Moscow is open to cooperating with American private companies and government agencies to develop its rare-earth industry.
