Russian authorities issue warning to Western companies of arrests and asset confiscation

McDonald’s, Coke, P&G, and IBM were among those who warned that executives may be arrested and their trademarks can be taken.

Prosecutors in Russia have warned Western firms that criticizing Moscow’s assault on Ukraine might result in the arrest of company leaders or the confiscation of assets in the nation.

Companies that received the warning included Coca-Cola, McDonald’s, Procter & Gamble, IBM, and Yum Brands, people familiar with the matter told The Wall Street Journal. According to the publication, the threats came in the form of phone calls, letters, and visits threatening to sue the firms and confiscate their assets, including their trademarks.

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According to sources, the threats forced at least one of the corporations to curtail contacts between its Russian operations and the rest of the company.

Since Moscow’s war on Ukraine, numerous private enterprises have severed connections with Russia, ranging from oil corporations and shops to sports groups and the media, as the nation has grown increasingly isolated from the global economy.

“Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region,” Helge Lund, chairman of BP, said in a statement at the time of his company’s departure last month, noting that it had worked with “brilliant” Russian colleagues in the nation for 30 years.

“However, this military action represents a fundamental change. It has led the bp board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue,” Lund added.

Russian President Vladimir Putin said last week that he would back legislation that would empower the Kremlin to nationalize the assets of international corporations that leave Russia as a result of its invasion of Ukraine, a move that the White House warned against on Friday.

Any lawless decision by Russia to seize the assets of these companies will ultimately result in even more economic pain for Russia,” Psaki tweeted. “It will compound the clear message to the global business community that Russia is not a safe place to invest and do business.”