Home Business US Condemns Russia’s Efforts to Seize Retreating Business’ Assets

US Condemns Russia’s Efforts to Seize Retreating Business’ Assets

US Condemns Russia’s Efforts to Seize Retreating Business’ Assets
Source: BBC

The US has slammed rumors that Moscow may confiscate the assets of companies that have ceased operations in Russia as a result of the invasion of Ukraine.

Jen Psaki, the White House press secretary, cautioned that such a move would lead to “additional economic damage.”

Her remarks come as the US Congress approves a budget measure that provides about $14 billion (£10.7 billion) in emergency help for Ukraine.

On Friday, President Biden is set to announce further sanctions against Russia.

Ms Psaki stated on Twitter that taking the assets of foreign corporations would be a “lawless decision.”

“It will reinforce the obvious message to the international business community that Russia is not a secure place to invest or conduct business,” she continued.

Moscow has threatened to nationalize industrial units or factories where work has been ceased in reaction to an increasing number of companies ceasing operations.

The proposal was recommended by the ruling United Russia party on Monday, however Andrei Turchak, the party’s general council secretary, admitted it was a “extreme measure.”

“But stabs in the back will not be tolerated, and we will defend our people. This is a genuine war, and it is being waged against citizens, not Russia as a nation “Mr. Turchak explained.

The party stated on Thursday that President Vladimir Putin was working on “legal options” to implement the plan.

Global firms who are breaking commercial links or have suspended activities in Russia have informed reporters that they have no intentions to reconsider their plans in light of the revelations.

“No signals have been received from Russian authorities that they want to nationalize our assets,” a Coca-Cola representative stated.

BP stated its “position remains unchanged” after announcing the sale of its investment in Rosneft, the Russian state-owned oil company.

“We have chosen to sell our shares in Rosneft as well as our joint ventures with Rosneft in Russia, and we are working toward that goal. This hasn’t changed or been updated in any way “According to a spokesman.

The US Congress enacted a $1.5 trillion budget measure on Thursday in Washington, which contains over $14 billion in emergency funding for Ukraine.

President Biden is anticipated to sign the package into law before the government’s financing runs out on Friday night.

On Friday, the US, the Group of Seven (G7), and the European Union are set to take steps to revoke Russia’s “most favoured nation” trading status in response to its invasion of Ukraine.

The US and its allies would be able to slap tariffs on Russia if the special trading status was revoked, further isolating its economy.

The G7 consists of the United States, the United Kingdom, Japan, Germany, France, Italy, and Canada.

Pushan Dutt, an INSEAD business school professor of economics and political science, feels Russia misjudged the global response to the conflict.

He said that the country had been “pushed to a corner” because it had misjudged Ukrainian resistance, international sanctions, and NATO and the US’s “desire to carry out full-fledged economic warfare.”

Professor Dutt told reporters, “I expect they will go ahead and nationalize these assets since their economy is under severe strain.”

“If all of these industries close and begin laying off people, they will face domestic pressures as well. The only way to keep domestic support is to portray it as a “we against them” scenario, with Russia pitted against the rest of the world” he stated.