Warnings from Russia to Western companies about arrests and seizures

Russian authorities, which have now significantly toughened their stance toward foreign companies announcing their intention to leave the country, have openly threatened some of them, warning that possible arrests of their senior officials or seizures of their assets, the Wall Street Journal reported yesterday, Sunday.

Russian prosecutors issued these warnings through phone calls, letters, or visits to companies across all sectors—from Coca-Cola, McDonald’s, Procter & Gamble, IBM, and Yum Brands, to the parent company of the KFC and Pizza Hut chains, the business newspaper reports, citing informed sources.

They threatened to arrest their officials who criticize the Russian government or to seize their assets, including intellectual property.

Following the Russian military’s invasion of Ukraine, Western governments imposed unprecedented sanctions on Moscow, while the list of companies that have announced they are leaving Russia or suspending their operations in the country continues to grow.

Russian authorities have stepped up measures to prevent capital flight and to support the ruble.

Without going so far as to utter the word «nationalization,» President Vladimir Putin has said that he does not rule out appointing «external» managers to head these companies and «transferring them to those who want to run them.».

The Russian prosecutor's office has also ordered «strict oversight» of foreign companies that announce the suspension of their operations. He warned that he would closely monitor compliance with labor laws and that he would pursue criminal charges in the event of any violations.

Because of the threats, at least one company has decided to limit its communications with its employees in Russia out of fear that their emails and text messages could be intercepted, while others hastily evacuated their top executives, according to a WSJ report.

Coca-Cola, McDonald's, Procter & Gamble, and Yum Brands did not immediately respond yesterday, Sunday, when the French Press Agency asked them to comment on this information.