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Updated July 11th, 2022 at 18:02 IST

Russia may seize assets of at least 47 biggest companies of the world: Report

The Russian government could seize critical assets from at least 47 foreign companies with operations in Russia, including the gas giant BP and Boeing.

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The Russian government could seize critical assets from at least 47 foreign companies with operations in Russia, including the gas giant BP and the aircraft manufacturer Boeing. Following Russia's invasion of Ukraine in February, a number of large international corporations decided to leave the nation in the face of harsh sanctions put in place by the US and its allies, The Hill reported.

According to a report that will be released by the Russian monitoring group Moral Rating Agency next week, the Kremlin may soon seize or transfer assets of those companies to a more benevolent company. Shell, Samsung, PepsiCo, Nissan, Intel, Microsoft, Toyota, and Ford are a few additional at-risk companies. According to the Moral Rating Agency, the 47 businesses at risk of having their assets taken by Russia account for 24% of the 200 biggest companies in the world.

The agency's founder, Mark Dixon, announced in a statement that the group expects a tsunami of expropriations or blackmailed concessions over the next couple of months, which could have an impact on the US stock market. The report is released after Russia has already taken action to seize assets from some businesses.

“Even corporations with a mix of assets at risk and non-asset activities may suffer on both lines of business because it will be difficult for corporations to keep trading with a country that illegally expropriates its factory or assets,” Dixon stated, according to The Hill.

Putin signed decree allowing new Russian company to take control of Sakhalin-2 energy project

Notably, a decree allowing a new Russian company to assume total control of the Sakhalin-2 gas and oil energy project in Russia's east was signed by Russian President Vladimir Putin on July 1. About 4% of the liquified natural gas in the world comes from the gas project. Several media agencies reported that the Sakhalin Energy Investment company was owned by energy tycoon Royal Dutch Shell and the Japanese firms Mitsui and Mitsubishi.

A law allowing the Kremlin to seize assets from other Western and international corporations is also expected to be passed in Moscow. As a corporate pariah, Russia has been adjusting to its new situation. A Russian businessman who had acquired 850 McDonald's locations began operating a rebranded restaurant chain in May using those establishments. The 47 businesses were rated by the Moral Rating Agency with a threat level rate ranging from one to 10 in its upcoming report after it earlier this month criticised businesses for failing to take action to withdraw services from Russia.

(With agency inputs)

Image: AP

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Published July 11th, 2022 at 18:02 IST

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