Russia is advancing a new law that will allow it to take control of local businesses operated by Western companies leaving in the wake of Moscow’s invasion of Ukraine, raising the stakes for multinationals trying to exit.
The law, which could be in place within weeks, will give Russia sweeping powers to intervene where there is a threat to local jobs or industry, making it more difficult for Western companies to disentangle themselves quickly unless they are prepared to take a big financial hit.
The law to seize the property of foreign investors follows an exodus of Western companies, such as Starbucks, McDonald's and brewer AB InBev, and increases pressure on those still there.