Russia proposes to nationalize foreign-owned factories that close their doors

A senior official in Russia’s ruling party has proposed nationalizing foreign-owned factories that shut down operations in the country in what the Kremlin is calling a special military operation in Ukraine.

Several foreign companies, including Toyota, Nike and home furnishings retailer IKEA, have announced the temporary closure of stores and factories in Russia to pressure the Kremlin to stop its invasion of neighboring Ukraine.

In a statement posted Monday night on the United Russia website, the secretary of the ruling party’s general council, Andrei Turchak, said the shutdown of operations is a “war” against the citizens of Russia.

The statement named private Finnish food companies Fazer, Valio and Paulig as the latest to announce closures in Russia.

“United Russia proposes to nationalize the production plants of companies that announce their departure and the closure of production in Russia during the special operation in Ukraine,” Turchak said.

“It is an extreme measure, but we will not tolerate being stabbed in the back and we will protect our people. This is a real war, not against Russia as a whole, but against our citizens,” he stated. “We will take harsh retaliatory measures, acting in accordance with the laws of war.”

Paulig’s chief executive stated in an email that this would not change his plans to withdraw from Russia. Fazer and Valio declined to comment when contacted by Reuters.

Fazer, which makes chocolate, bread and pastries, has three bakeries in St. Petersburg and one in Moscow, and employs about 2,300 people. Valio has a cheese factory and employs 400 people in Russia, and Paulig has a coffee roaster and employs 200 people in the country.

Last week, Finland, which is not a member of the North Atlantic Treaty Organization (NATO) and shares a border with Russia, agreed to strengthen security ties with the United States, while nervously watching the Russian invasion of Ukraine.