Russia is close to an incredible decision: what could happen to foreign factories

Car manufacturers, including VW, Toyota, Ford and Hyundai, closed factories in Russia after the invasion of Ukraine.

A senior member of Russia’s ruling party has proposed nationalizing foreign-owned factories that are closing operations in the country because of what the Kremlin calls a special military operation in Ukraine.

Several foreign companies, including Toyota, Nike and IKEA home furniture retailer, have announced the temporary closure of Russian shops and factories to put pressure on the Kremlin to stop Ukraine’s neighboring invasion.

In a statement posted on the United Russia website, the ruling party’s general council secretary Andrei Turchak said the closure of operations was a “war” against Russia’s citizens.

The statement cited Finnish private food companies Fazer, Valio and Paulig as the latest to announce closure in Russia.

A controversial decision

“United Russia is proposing to nationalize the production plants of companies announcing the abandonment and closure of production in Russia during the special operation in Ukraine,” Turchak said.

“This is an extreme measure, but we will not tolerate being stabbed in the back and we will protect our people. This is a real war, not against Russia as a whole, but against our citizens, “he said.

“We will take harsh retaliatory action, acting in accordance with the laws of war,” Turchak said.

Fazer, which produces chocolate, bread and pastries, has three bakeries in St. Petersburg and one in Moscow, with about 2,300 employees.

Valio has a cheese factory and 400 employees in Russia, and Paulig has 200 employees in the country.

Last week, Finland, which is not a NATO member but shares the border with Russia, agreed to strengthen security ties with the United States, while nervously pursuing Russia’s invasion of Ukraine.

In other words, by this decision, Russia wants to defend its interests and put pressure on companies that have not already left the country.