First it was just to ensure the internal supply of Russia, then already served to feed the soldiers. Now there is a new step
It was seized by Russia in October 2024, but now it may have a new destination. US Glavprodukt’s canned company was under Kremlin’s purposes with the justification that it would guarantee Russia’s supply. Now, and according to the documents analyzed by Reuters, the company intends to expand its sales and export food to China and North Correia.
At a time when relations between the US and Russia seem to be, Washington, DC said that this apprehension could be one more reason affecting the restoration process between the two parts.
The company that was founded by Leonid Smirnov, a citizen of Los Angeles, operates in Russia. He was confiscated with the argument that it would be the best strategy to ensure Russian internal supply after all the economic sanctions applied following the invasion of Ukraine. The company now faces sales in sales and production remains almost the same, which led to the need to adopt measures to face the excess of supply.
The company’s financial results were not expected and were declining quickly, “moving from modest profitability to regular monthly net loss”, according to Reuters.
“They claimed they took my company to secure food to Russia. But they are not fulfilling this goal, this justification,” Smirnov said in statements to Reuters.
Glavprodukt’s management team, which was named by the Russian state, now seeks solutions, and one of which could be food exports to new markets, such as North Korea and Middle East.
China is also an option on the table and represented about 1% of Glavprodukt sales last year. Although the US and China have reached a trade agreement last month, the United States said they could impose tariffs on Chinese products again in August.
This new Russian maneuver option reflects the change in Moscow trade, which now seeks to establish economic links with countries that do not follow the sanctions imposed against Russia.
In April, Reuters reported that Glavprodukt would be used to feed the Russian army, however, it has not yet been possible to determine the truth of the facts and realize that this supply has already begun.
Entrepreneur Leonid Smirnov now tries to recover the company and has an audience scheduled for July 11 at the Moscow Arbitration Court.
This is not the first foreign company that is under the Kremlin purposes. From the invasion of Russia to Ukraine in 2022 that the Russian government has already placed 12 companies under its temporary management.
Danish brewer Carlsberg and the French yogurt producer Danone were targeted by the same process and their assets were bought at prices reduced by Kremlin friends.
Russia justifies these acts of asset apprehension by saying that companies are strong from a strategic point of view.
