Putin tries to seize the assets of «naughty» Western companies fleeing Russia

Russian President Vladimir Putin signed a decree allowing the state to seize the assets of Western companies. Photo: GAVRIIL GRIGOROV/SPUTNIK/KREMLIN POOL/EPA-EFE/Shutterstock

Vladimir Putin signed a secret decree to seize the assets of Western companies and make it harder for them to leave Russia.

The Kremlin signed a decree last week that would allow officials to appropriate «naughty» Western assets at cut prices, and is also considering measures to completely nationalize businesses, reports the Financial Times.

The move would give the Russian state the priority right to buy any Western assets to sell at a «substantial discount» so that they could eventually be sold at a profit.

It would also require all private buyers of Western companies to be either wholly owned by Russia , or is in the process of reducing all foreign shareholders.

Dmitry Peskov, Putin's spokesman, told the Financial Times that Western investors and companies are «more than welcome» in Russia, but added that others have stopped paying salaries entirely or have moved out of the country at a huge loss.

He added: “If a company does not fulfill its obligations, then, of course, it goes into the category of dysfunctional companies. We say goodbye to these companies. And what we will do with their assets after that is our business.”

This came after a number of Western corporate giants decided to stay in Russia despite Putin's war against Ukraine.

Unilever CEO Alan Jope said leaving Russia is «not easy.» for company Photo: AP Photo/Julia Nikhinson

Philip Morris International, the tobacco giant that makes Marlboro cigarettes, recently said it would «rather keep» its business in Russia despite having three strong buyers.

Unilever CEO Alan Jope said that leaving the country is «not easy» and refused to «dump» about 3,000 employees in Russia or hand over its assets to the Kremlin.

At the same time, Heineken said the company faced a «very real risk» in February nationalization of local businesses by Russia.

Russian authorities have warned a Dutch brewery that the suspension or closure of its local production would be considered «deliberate bankruptcy». , a criminal offense that could result in the Kremlin appointing outside managers for the business.

French companies have come under particular criticism for staying in Russia, with Ukrainian President Volodymyr Zelensky last year accusing a number of businesses in the country of «sponsoring the Russian military machine.»