The Russian government has suspended work on the recently proposed bill to nationalize foreign firms that have chosen to end their operations in the country amid Ukraine-related Western sanctions, Izvestia newspaper reported on Monday, citing sources.
Last month, a government commission on legislative activity approved a draft law, which would allow for the introduction of external management in firms, at least 25%-owned by residents of “unfriendly states,” or of countries that have placed sanctions on Russia. The initiative was proposed in response to a mass exodus of foreign companies from the country due to Western sanctions related to the conflict in Ukraine. The measure was aimed at preventing these firms’ bankruptcies and the loss of jobs in Russia.
According to Izvestia, the draft document has not yet been submitted to the government. One of the unnamed sources cited by the publication explained that “it does not make sense to launch such a serious mechanism at this stage” because foreign companies are increasingly expressing interest in negotiating the terms of their exit with Russian authorities, and many of them plan to resume work in Russia in April-May.