Ukraine war: Western companies would be seized by Russia in new legislation
Many western businesses have suspended operations in Russia
Russia gave preliminary approval Tuesday to legislation that would allow the government to take control of the local businesses of western companies that decided to leave the country after its invasion of Ukraine.
The bill – which could be in place within weeks – would transfer control over companies that left Russia due to what its parliament deemed to be "anti-Russian sentiment."
News agency Tass said foreign owners would still be able to resume operations in Russia or sell their shares.
Many foreign companies have suspended their operations in Russia, while others have completely removed themselves.
NIKE WON'T RENEW FRANCHISE AGREEMENTS IN RUSSIA: REPORT
The State Duma, the lower house of Russia’s parliament, approved the bill in the first of three readings on Tuesday.
If approved, it would go to the upper house and then to Russian President Vladimir Putin.
A customer is reflected in a shop window decorated with Nike store logo at the outlet village Belaya Dacha outside Moscow, Russia, April 23, 2016. (REUTERS/Grigory Dukor / Reuters)
Russia's economy ministry said it would pick out companies only in "critical cases."
Ukrainian Foreign Minister Dmytro Kuleba said in a statement that the law would make it even more imperative for foreign companies in Russia to leave.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 102.46 | +0.95 | +0.94% |
| NKE | NIKE INC. | 78.77 | +0.43 | +0.55% |
| MCD | MCDONALD'S CORP. | 296.01 | +0.93 | +0.32% |
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"It’s the last chance to save not only your reputation but your property," he urged.
Athletic retail giant Nike has reportedly not renewed its franchise agreements in Russia.
Starbucks previously announced that it is pulling out of the Russian market and McDonald's said it would see its Russian business after more than three decades of operations there.
Russia is being ‘forcibly decoupled’ from the US, Europe: Ian Bremmer
Eurasia Group President Ian Bremmer weighs in on three looming crises facing the U.S.
"Starbucks has made the decision to exit and no longer have a brand presence in the market," Starbucks told FOX Business.
"The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values," McDonald's said in a statement.
CLICK HERE TO READ MORE ON FOX BUSINESS
IKEA, which paused its operations, told Reuters that it was closely following the development.
Fox Business' Danielle, Wallace, Daniella Genovese, The Associated Press and Reuters contributed to this report.