Western companies that have not had time to withdraw their assets and capital from Russia are subject to this action of force. At least the brands themselves are leaving, but ownership remains in the Russian Federation. Thus, by decree of President Vladimir Putin, two companies belonging to the Finnish utility company Fortum Oyj and the German utility company Uniper SE were transferred to state administration. According to Bloomberg, in response to the freezing of assets in the United States and its allies.
Russia’s president on Tuesday evening signed an executive order allowing the government to impose temporary state control over property or securities held by companies or individuals from so-called hostile states. The Federal Agency for State Assets Management, a division of the Ministry of Finance, will manage temporarily seized assets.
The only two assets listed so far in addition to the disposal order are Uniper’s 83.7% stake in Unipro PJSC and Fortum’s 98.2% stake in local Fortum PJSC. Fortum is one of the largest foreign investors in the Russian electrical industry. In May last year, the company announced its intention to exit the domestic market, but did not do so, failing to find buyers for its business. Now that this is no longer feasible, the brand will leave, but the assets will remain in the Russian Federation.
According to the Federal Property Management Agency, if necessary, the list of assets can be expanded.
The objectives of the normative act are directly stipulated in the decree of the Head of State. Thus, it is stated that the decision was made “in connection with the need to take urgent action” in response to hostile actions contrary to international law by the United States and foreign states and international organizations that have joined them. The decree counteracts the illegal deprivation of the Russian Federation, Russian legal entities and natural persons of the right to property and the restriction of their property rights and contributes to the protection of the national interests of the Russian Federation.
As stated in the document, temporary management can be introduced with respect to movable and immovable property of foreign persons associated with the countries listed above, located on the territory of the Russian Federation, securities, shares of the authorized capital and property rights.
Photos used: pixabay.com
Read the Latest Government Politics News on The Eastern Herald.
