In Russia, they propose to introduce a new criterion for the transfer of foreign businesses to state management. The head of the State Duma Committee on Regional Policy and Local Self-Government, Alexei Didenko, approached Prime Minister Mikhail Mishustin with such a proposal. The document is at the disposal of Izvestia.
“In light of the increasing sanctions pressure from unfriendly countries on Russia, I ask you to consider the possibility of introducing an additional criterion for the transfer of foreign assets to the temporary management of the Federal Property Management Agency. In particular, such a reason may be the abuse of its significant position in the Russian market by a company with foreign roots. Often they are only de jure considered Russian, but de facto they carry out the sanctions decisions of their foreign head offices,” the document says.
According to the deputy, such Western companies are represented on the Russian market. They did not curtail their presence completely, but reduced it to zero in those areas that were included in the sanctions restrictions, and continue to make money successfully in other industries.
As an example, they cited the situation with the AvtoVAZ concern, which for the second year has been unable to produce cars in a full range of colors due to a sudden cessation of supplies from the three main importers of paint and varnish coatings in the auto industry: BASF, AkzoNobel and PPG.
“At the same time, the Dutch AkzoNobel still has enterprises in Russia and works quite successfully in the non-sanctioned area, earning money in our country and replenishing the budget of the Dutch corporation. Its tax payments also finance the armed forces of Ukraine. At the same time, Russian manufacturers cannot build a long-term strategy because they do not understand whether supplies of materials from such wavering companies will be restored or not,” the deputy told Mishustin.
According to Didenko, alternative paint manufacturers from China, which partially meet Avtovaz’s needs, often themselves operate under license from the same European or American brands. So in the long term, their presence in the Russian Federation may be in question, Didenko believes.
“This policy is popularly called “both ours and yours.” Because of this, Russian manufacturers often find themselves in limbo, whether supplies will continue or not. Such enterprises, especially if they have a dominant position in our market in their field, of course, must decide: either they continue to operate fully, or they fall under our retaliatory sanctions – into the temporary management of the Federal Property Management Agency,” the parliamentarian told Izvestia.
The head of the State Duma Committee on Regional Policy and Local Self-Government explained what needs to be done: to guarantee priority in orders from companies with a high share of state participation to original Russian manufacturers, who can and want to occupy an empty niche, but need systemic support to reach the required capacity.
Earlier, on November 7 last year, Finance Minister Anton Siluanov told reporters that Russia was taking retaliatory measures by introducing external management of a number of companies from unfriendly countries. He recalled that back in April 2023, a presidential decree “On the temporary management of certain property” was issued. At the same time, Siluanov emphasized that this happens in exceptional cases, when companies do not comply with their obligations, including social ones, or when they violate the legislation of the Russian Federation. At the same time, bona fide organizations receive support from the government and relevant departments in resolving issues related to the continuation or forced adjustment of their activities in Russia, he added.
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