In response to multinational firms trying to exit Russia in the wake of the Ukraine invasion, Moscow is advancing a new law allowing it to take control of the local businesses of western companies that leave
, the world's biggest furniture brand, IKEA, fast food chain Burger King, and hundreds of smaller firms still have businesses in Russia. Any that try to leave face this tougher line.
Moscow typically refers to countries as "unfriendly" if they have imposed economic sanctions on Russia, meaning any firms in the European Union or United States are at risk. "The government is interested in preserving jobs and tax revenues," said Sergej Suchanow, a lawyer with risk management and compliance consultancy RSP International.A stop road sign is seen next to skyscrapers at Moscow International business centre, also known as "Moskva-City", in Moscow, Russia April 14, 2022. REUTERS/Maxim Shemetov"First and foremost, the government will apply the rules to big companies.
It lays down a wide range of criteria for intervention, such as when a company plays a critical role as a local employer or provides important services. It makes clear that the state can justify taking control on many grounds. A court or the Ministry of Economic Development could decide to put an administrator, such as Russia's development bank VEB, in charge.
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