The law, which could be in place within weeks, will give Russia sweeping powers to intervene where there is a threat to local jobs or industry, making it more difficult for western companies to disentangle themselves quickly unless they are prepared to take a big financial hit. The law to seize the property of foreign investors follows an exodus of western companies, such as Starbucks, McDonald’s and brewer AB InBev, and increases pressure on those still there.
It comes as the Russian economy, increasingly cut-off due to western sanctions, plunges into recession amid double-digit inflation…. The bill paves the way for Russia to appoint administrators over companies owned by foreigners in “unfriendly” countries, who want to quit Russia as the conflict with Ukraine drags down its economy. 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 European Commission proposed toughening its own stance on Wednesday to make breaking EU sanctions against Russia a crime, allowing EU governments to confiscate assets of companies and individuals that evade restrictions against Moscow.
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