Moscow has launched a plan to use the US company “Glavprodukt“, seized by the Kremlin and placed under state control, to supply food to the Russian army, Reuters reports. The move could threaten the warming of relations between Russia and the US, as it comes against the backdrop of talks to end the war in Ukraine, BTA reports.
“Glavprodukt“ is a canned food producer whose assets were seized by Russian authorities in October 2024. and is the only American company placed under Russian state control.
US Secretary of State Marco Rubio said that the way the company was treated by Russian authorities would be considered during talks to restore US-Russia relations.
According to the new management of „Glavprodukt“, the seizure was necessary to ensure stable production, including for future supplies to the Russian National Guard and the Ministry of Defense. Reuters refers to a letter sent by the company's new management to the Russian Prosecutor General.
„Glavprodukt“ is now under the control of the Federal Property Management Agency „Rosimushchestvo“ and was seized from Los Angeles-based businessman Leonid Smirnov.
Russian prosecutors accuse Smirnov and the companies he controls of, in the period 2022-2024. have taken out of Russia about 1.38 billion rubles ($17 million), the Russian newspaper RBC reported in March.
On March 12, the assets of “Glavprodukt“ were frozen by the Moscow Arbitration Court at the request of the Prosecutor General's Office. A hearing in the case is scheduled for April 18. Smirnov denies the charges and says the case is a “Russian-style corporate raid“ aimed at stealing his company.
By presidential decree, the assets of about a dozen European companies, including the Danish brewery “Carlsberg“ and the Finnish utility company “Fortum“, were also seized by Russian authorities. The Kremlin has warned that more seizures of foreign assets could follow.
The invasion of Ukraine, which was expected to be a quick operation, has now been ongoing for more than three years, with Russia increasing its defense spending and tightening its control over strategic assets, Reuters notes.