In a plea to President Donald Trump, American business owner Leonid Smirnov has actually looked for intervention in the Russian seizure of his $200 million canned food company, Glavprodukt
What Taken Place: Smirnov, who fears his business is being methodically taken apart under Russian “momentary management,” has actually alerted of possible consequences for other US-owned companies running in Russia.
Russian authorities have actually taken Smirnov’s business, marking the very first circumstances of an American-owned company being targeted. Smirnov, a Los Angeles-based business owner who got away the Soviet Union in the 1970s, established Glavprodukt in 1999. The business has actually given that ended up being a home name in Russia, similar to Campbell’s in the United States.
Smirnov asserts that the seizure of his business becomes part of a bigger project by President Vladimir Putin versus foreign companies in Russia. He warns that if it can take place to him, it can take place to any of the numerous US-owned business running in Russia, reports The New york city Post.
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Because the seizure, Smirnov’s Moscow-based business, which uses 1,000 employees throughout 3 factories, has actually started to experience losses for the very first time, with the business’s worth plunging by as much as 30 percent. He fears for his and his household’s security and has actually contacted President Trump to step in and secure American-owned companies in Russia.
Secretary of State Marco Rubio has actually recommended that the problem of Glavprodukt would become part of any conversation about resetting U.S.-Russia relations. Nevertheless, Smirnov fears his business might not endure till then.
Why It Matters: This occurrence highlights the precarious position of foreign companies running in Russia, especially those owned by Americans. The seizure of Glavprodukt acts as a plain caution to other US-owned business in Russia, highlighting the possible dangers they deal with in the middle of intensifying stress in between the 2 countries.
The result of this scenario might set a precedent for future transactions in between United States and Russian companies, making this a matter of substantial issue for American business owners and financiers alike.
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