Home Technology Russia considers nationalizing Russian business of Apple and other Western companies

Russia considers nationalizing Russian business of Apple and other Western companies

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Hundreds of Western companies have suspended their activities in Russia, following the aggression in Ukraine. Apple, for example, has stopped selling its products there, whether on its online store or via its distribution network. The manufacturer is obviously not alone: ​​Uniqlo, McDonald’s, Ikea and many other companies with a storefront, whether in offices or shops, have closed the curtain.

Credit: Alexander Dorofeev, Unsplash

To keep thousands of workers out of work as the noose of sanctions tightens around the Russian economy, Vladimir Putin and his party, United Russia, are working on a bill that would allow authorities to temporarily nationalize the assets of businesses that have gone out of business. The text must be discussed this Friday in the Russian parliament.

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The idea is to transfer the activity of these companies to external management teams in order to ” avoid bankruptcy and preserve employment “, according to United Russia taken over by the washington post. This external management would last three months, after which the government would put the activity up for auction. One wonders what this will do in the case of Apple since exports of its products have been frozen.

Foreign companies that don’t want to lose their Russian assets will be given the opportunity to restart their business, but within five days of the nationalization notice… If this law passes, and there’s no real reason to doubt it, the companies concerned risk losing a few feathers.

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The text does not specify what will happen if the foreign company continues to pay its Russian employees, while having stopped its activity in the country. This is the case of McDonald’s, which has agreed to pay their salaries to 62,000 employees. The fast food chain estimated that this measure, as well as the costs associated with the closure of its restaurants, represents a shortfall of 50 million dollars per month.

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