Russian President Vladimir Putin has recently made headlines by signing a decree that temporarily transfers control of a major canned food maker to the Russian government. This move comes after Putin’s authorization in April 2023 to seize the assets of foreign companies from countries deemed “unfriendly” by the Kremlin, in response to Western sanctions freezing around $300 billion in Russian state assets.
The decree specifically targets the Glavproduct holding company, its subsidiaries, and three canning plants, along with the parent company Promselkhozinvest, owned by the U.S.-registered Universal Beverage Company, which is controlled by Russian-born U.S. businessman Leonid Smirnov.
Described as Russia’s leading canned food producer with over 500 brands, Glavproduct’s assets will now be overseen by Russia’s Federal Agency for State Property Management. The seizure of these assets is part of the larger picture of Western sanctions following Russia’s invasion of Ukraine in 2022, with the EU planning to use frozen assets to support Ukraine’s defense and reconstruction efforts.