The Evropeisky mall in Moscow was once a symbol of a Russia integrated into the global consumer economy, with atriums named after cities like Lon-don, Paris and Rome.
But now large parts of the seven-story shopping centre have gone quiet after Western brands from Apple to Victorias Secret closed their Russian op-erations in the two weeks since the country invaded Ukraine.
Hundreds of companies have similarly an-nounced plans to curtail ties to Russia, with the pace accelerating over the past week as the deadly violence and humanitarian crisis in Ukraine worsens, and as Western governments ratchet up economic sanctions.
Russian President Vladimir Putin responded on Thursday by saying that if foreign companies shut down production in Russia, he favoured a plan to bring in outside management and then transfer these companies to those who want to work.
A draft law could allow Russian courts to ap-point external administrators for companies that cease operations and are at least 25 per cent foreign-owned.
If the owners refuse to resume operations or to sell, the company’s shares could be auctioned off, the ruling United Russia party has said, calling it the first step toward nationalisation.
Chris Weafer of Macro-Advisory, a consultancy specialising in Russia, said the Russian government “is adopting a carrot-and-stick approach to foreign business, with talk of nationalisation balanced out with government help for those who stay. A key reason, Weafer said, is the Kremlin’s desire to avoid mass unemployment.
When it comes to social pressures or potential public backlash, what they understand, I guess, is that people will not take to the streets because they cannot buy a Big Mac, Weafer said.
But they might take to the streets if they have no job and no income. White House press secretary Jen Psaki criticised any lawless decision by Russia to seize the assets of these companies, saying that it will ultimately result in even more economic pain for Russia.”
It will compound the clear message to the global business community that Russia is not a safe place to invest and do business, she said in a tweet, adding that Russia may also invite legal claims from companies whose property is seized.—AP
