Latest news with #LeonidSmirnov
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.
Yahoo
17-04-2025
- Business
- Yahoo
Russia plans to use seized US company to supply food to its military, Reuters says
The Kremlin is planning to use a confiscated US company to supply food to its military. Source: Reuters, citing a document Details: A letter reviewed by Reuters from canned food manufacturer Glavprodukt – the only American-owned company in Russia to be placed under new state management after being seized in October – states that the takeover was necessary to stabilise production, particularly for future supplies to the Russian National Guard and Ministry of Defence. Glavprodukt is now under the control of Rosimuschestvo, Russia's state property management agency, after being seized from its Los Angeles-based founder, Leonid Smirnov. The Kremlin-aligned Russian news agency RBC reported in March that prosecutors have accused Smirnov and his affiliated companies of transferring approximately RUB 1.38 billion (US$17 million) out of Russia between 2022 and 2024. Glavprodukt's property was seized by the Moscow Arbitration Court on 12 March at the request of the Prosecutor General's Office, with a hearing scheduled for 18 April. Smirnov denies any wrongdoing, describing the case as a "Russian-style corporate raid" intended to take over his business. Around a dozen European companies have also lost their Russian subsidiaries due to decrees issued by Russian leader Vladimir Putin. Among them are Danish brewing giant Carlsberg and Finnish energy firm Fortum. The Kremlin has signalled that such confiscations may continue. Initially, the Kremlin had counted on a swift victory in Ukraine, but the war has dragged on for more than three years. This has compelled Russia to drastically ramp up military spending and tighten its grip on strategic assets. In 2022, Moscow struggled to secure essential military supplies, even including food. Background: Putin ordered the Russian Cabinet of Ministers (government) to prepare for the comeback of Western companies. Following the intensification of negotiations between the US and Russia, one of the Western companies received calls inviting them to re-enter the Russian market. Support Ukrainska Pravda on Patreon!
Yahoo
06-03-2025
- Business
- Yahoo
Russia files lawsuit against US-based owner of seized canning business
(Reuters) - Russian prosecutors have filed a lawsuit against the owner of U.S.-owned Glavprodukt, a company seized by Moscow in October, accusing him of illegally withdrawing around $15.5 million from Russia over the last two years, the RBC news outlet reported. President Vladimir Putin decreed in October 2024 that Glavprodukt and other assets ultimately owned by U.S. company Universal Beverage and Leonid Smirnov be placed under the Russian state's "temporary management", giving Moscow control over the running of the business. The General Prosecutor's lawsuit, filed on March 5, contained no details, beyond naming the defendants as Smirnov, Universal Beverages and other companies. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The RBC business daily, citing unnamed sources, said it was based on the allegation that Smirnov and the foreign companies controlled by him had moved around 1.38 billion roubles ($15.46 million) out of Russia from 2022 to 2024. Smirnov could not immediately be reached for comment. Smirnov previously told Reuters that he has completely lost control of Glavprodukt, the largest maker of canned food in Russia, since the seizure, and accused the new bosses of presiding over a drop in sales. RBC cited a source as saying that Smirnov had sought to block the Russian state's takeover management of his company and issued written instructions to employees not to cooperate with Rosimushchestvo, the federal property management agency. ($1 = 89.2500 roubles)
