Latest news with #LeonidSmirnov
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
The American Fighting to Pry His Company Back From the Kremlin's Grasp
American businessman Leonid Smirnov first got the feeling that something was off when local Russian newspapers began airing rumors that the government was looking at taking over his company, the biggest producer of canned goods in the country. It was only when he received a phone call from an employee at 3:30 a.m. at his Los Angeles residence last October that he found out for sure that Russian President Vladimir Putin had ordered the nationalization of Glavprodukt. His was the first U.S.-owned company to fall victim to what is now a mounting wave of Kremlin business seizures.
Free Malaysia Today
15-07-2025
- Business
- Free Malaysia Today
Russian court hands US-owned food company's assets to the state
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.
Yahoo
14-07-2025
- Business
- Yahoo
Russian court hands US-owned food company's assets to the state
(Reuters) -A Moscow court has ruled that the assets of U.S.-owned canned food company Glavprodukt be handed over to the Russian state, the TASS news agency reported late on Friday, ending a months-long legal tussle over the company. One participant in the court proceedings, who declined to be named, confirmed to Reuters on Monday 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 U.S. company Moscow has seized, coincides with stalled attempts to reset U.S.-Russian relations. Glavprodukt and other assets ultimately owned by U.S. 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 to ensure 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. Smirnov's legal team did not immediately respond to a request for comment outside U.S. business hours. Since being placed under state management, Glavprodukt's sales have dropped sharply and the company has started posting a regular monthly loss, according to documents seen by Reuters last week. In spite of the state seizure aimed at securing food supplies for Russia, 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. Sign in to access your portfolio
USA Today
11-07-2025
- Business
- USA Today
US-owned company seized to feed Russia planning to supply China, North Korea instead
LONDON, July 10 (Reuters) - A U.S.-owned canned food company seized by Russia to safeguard domestic food supplies is planning to boost dwindling sales with exports to China and North Korea, according to documents reviewed by Reuters and people familiar with the matter. Washington has said the treatment of Glavprodukt, the only U.S. company Moscow has seized, will influence a planned reset of U.S.-Russia relations which appear to have stalled. Glavprodukt, the largest canned food producer in Russia, was founded by Los Angeles-based Leonid Smirnov and seized by the Kremlin in October 2024. Moscow argued that the company is of strategic importance to Russia's food supply. Sales have dropped sharply, documents showed. Production has remained at similar levels, so the oversupply has left the company trying to find new markets and increase its warehouse capacity, according to strategy documents and two people familiar with the matter. "They claimed they took my company to secure food for Russia. But they are not living up to this purpose, this justification," Smirnov told Reuters. Smirnov is fighting in court to regain his company. The next hearing is scheduled for July 11 at the Moscow Court of Arbitration. More: Moscow plans to use seized US-owned company to feed Russian army, document shows In June, Glavprodukt's new state-appointed management team proposed exporting to new markets, including North Korea and the Middle East, the documents seen by Reuters showed. They also sought to increase sales to China, a market that made up about one percent of Glavprodukt's sales last year. Glavprodukt's new management did not respond to multiple emailed requests for comment. The strategy shift shows how Russia's trade has changed since invading Ukraine. Trade with North Korea, China and other countries that have not imposed sanctions against Russia can take place outside Western influence. Glavprodukt's pivot appears inconsistent with Vladimir Putin's position on June 27 in Minsk that he wants to welcome American companies back to Russia. Negotiations between the U.S. and Russia over the war in Ukraine have stalled with President Donald Trump expressing disappointment after a July 3 phone call with Putin. Separately, relations between the U.S. and China have deteriorated since Trump targeted China with trade tariffs, leading to retaliation from Beijing. The two countries agreed to a trade framework last month but the U.S. had said it may restore tariffs on Chinese goods in August. The Kremlin's plans for Glavprodukt reflect Russia's approach to managing foreign-owned assets under state control. In April, Reuters reported that Glavprodukt would be used to supply food to the Russian army. Reuters could not determine whether supplies to the army had started. STRATEGIC ASSET Moscow has placed around a dozen foreign companies under temporary management since invading Ukraine in February 2022. Danish brewer Carlsberg and French yoghurt maker Danone saw their assets eventually sold off to Kremlin-friendly buyers at knock-down prices. Among other companies with assets still in Russia are U.S. multinationals Procter and Gamble PG.N and PepsiCo PEP.O. Russia has regularly justified asset seizures by labelling companies as strategic. Russia's Prosecutor General used similar reasoning when arguing that the preliminary court hearing for Glavprodukt should be closed to the public, according to sources familiar. The Prosecutor General's office did not immediately respond to a request for comment. Glavprodukt's financial results have rapidly deteriorated, according to filings seen by Reuters, sliding from modest profitability to a regular monthly net loss. Last month, the Ministry of Agriculture asked the company to explain why sales were substantially down, according to two sources. Companies which are seized and handed to management teams are under pressure to maintain employment and growth, they said. The Agriculture Ministry did not immediately respond to a request for comment. The strategy documents seen by Reuters reveal that Glavprodukt is looking to develop its e-commerce sales channels and come up with plans to increase exports to China, as well as highlighting markets in Africa and South Asia where demand for Glavprodukt's canned fish could be high. Employees have sought to register the company's trademark in China, the documents showed. A pre-paid shipment to China of goods like canned fish and condensed milk has not arrived on time, the documents showed, highlighting the potential pitfalls of expanding exports. ($1 = 78.1500 roubles) (Reporting by Anna Hirtenstein and Alexander Marrow; Editing by Elaine Hardcastle)
Al Arabiya
10-07-2025
- Business
- Al Arabiya
US company seized to feed Russia plans supply to China, North Korea instead
A US-owned canned food company seized by Russia to safeguard domestic food supplies is planning to boost dwindling sales with exports to China and North Korea, according to documents reviewed by Reuters and people familiar with the matter. Washington has said the treatment of Glavprodukt, the only US company Moscow has seized, will influence a planned reset of US-Russia relations which appear to have stalled. Glavprodukt, the largest canned food producer in Russia, was founded by Los Angeles-based Leonid Smirnov and seized by the Kremlin in October 2024. Moscow argued that the company is of strategic importance to Russia's food supply. Sales have dropped sharply, documents showed. Production has remained at similar levels, so the oversupply has left the company trying to find new markets and increase its warehouse capacity, according to strategy documents and two people familiar with the matter. 'They claimed they took my company to secure food for Russia. But they are not living up to this purpose, this justification,' Smirnov told Reuters. Smirnov is fighting in court to regain his company. The next hearing is scheduled for July 11 at the Moscow Court of Arbitration. In June, Glavprodukt's new state-appointed management team proposed exporting to new markets, including North Korea and the Middle East, the documents seen by Reuters showed. They also sought to increase sales to China, a market that made up about one percent of Glavprodukt's sales last year. Glavprodukt's new management did not respond to multiple emailed requests for comment. The strategy shift shows how Russia's trade has changed since invading Ukraine. Trade with North Korea, China and other countries that have not imposed sanctions against Russia can take place outside Western influence. Glavprodukt's pivot appears inconsistent with Vladimir Putin's position on June 27 in Minsk that he wants to welcome American companies back to Russia. Negotiations between the US and Russia over the war in Ukraine have stalled with President Donald Trump expressing disappointment after a July 3 phone call with Putin. Separately, relations between the US and China have deteriorated since Trump targeted China with trade tariffs, leading to retaliation from Beijing. The two countries agreed to a trade framework last month but the US had said it may restore tariffs on Chinese goods in August. The Kremlin's plans for Glavprodukt reflect Russia's approach to managing foreign-owned assets under state control. In April, Reuters reported that Glavprodukt would be used to supply food to the Russian army. Reuters could not determine whether supplies to the army had started. Strategic asset Moscow has placed around a dozen foreign companies under temporary management since invading Ukraine in February 2022. Danish brewer Carlsberg and French yoghurt maker Danone saw their assets eventually sold off to Kremlin-friendly buyers at knock-down prices. Among other companies with assets still in Russia are US multinationals Procter and Gamble and PepsiCo. Russia has regularly justified asset seizures by labelling companies as strategic. Russia's Prosecutor General used similar reasoning when arguing that the preliminary court hearing for Glavprodukt should be closed to the public, according to sources familiar. The Prosecutor General's office did not immediately respond to a request for comment. Glavprodukt's financial results have rapidly deteriorated, according to filings seen by Reuters, sliding from modest profitability to a regular monthly net loss. Last month, the Ministry of Agriculture asked the company to explain why sales were substantially down, according to two sources. Companies which are seized and handed to management teams are under pressure to maintain employment and growth, they said. The Agriculture Ministry did not immediately respond to a request for comment. The strategy documents seen by Reuters reveal that Glavprodukt is looking to develop its e-commerce sales channels and come up with plans to increase exports to China, as well as highlighting markets in Africa and South Asia where demand for Glavprodukt's canned fish could be high. Employees have sought to register the company's trademark in China, the documents showed. A pre-paid shipment to China of goods like canned fish and condensed milk has not arrived on time, the documents showed, highlighting the potential pitfalls of expanding exports. ($1 = 78.1500 rubles)
