Ekaterina Girnyk16:22, 12/20/23
The Kremlin’s seizure of these billion-dollar assets could leave companies from Austria and Germany without a livelihood.
Russian President Vladimir Putin signed decrees giving the Russian government the power to confiscate and force the sale to new Russian owners of billions of dollars in assets belonging to European energy companies .
According to Politico , in a decree published on Wednesday, the Kremlin ordered the creation of new Russian companies that will receive shares in the Yuzhno-Russkoye oil and gas field, currently owned by Austria’s OMV and Germany’s Wintershall.
It is noted that these two largest European energy companies, representing countries that Moscow considers “unfriendly,” together own a 60 percent stake in a drilling site in the Russian Far North.
“While the companies would theoretically receive compensation for their investment, the amount they receive from the sale will be determined by the Russian state. The move marks the largest asset seizure in the country’s recent history,” Politico writes.
It is noted that many Western energy companies have announced their complete withdrawal from Russia since the start of the war in February 2022, including the American Exxon Mobil and the Norwegian Equinor. However, other companies such as Shell, BP, TotalEnergies and Wintershall have faced practical difficulties in winding down their businesses in the country and returning their funds.
Experts warn that a lack of Western investment, coupled with an embargo on key equipment and technology for oil and gas exploration and drilling, means Russia’s flagship fossil fuel sector is likely to face long-term decline in productivity, despite sanctions loopholes and high oil and gas prices,” writes Politico.
Russian confiscation of European assets
In July, the Kremlin decided to transfer the Russian subsidiaries of Carlsberg and the French Danone under external management.
Russia invited the West to “exchange” frozen assets : Western companies that cannot withdraw capital from the Russian Federation, the Kremlin offers to take away Russian assets frozen by the West as part of sanctions.
Previously, the European Union planned to impose sanctions against individuals and organizations involved in the seizure of assets of European companies in Russia , although so far Brussels has not punished those who profited from the confiscation
(C)UNIAN 2023
Fracken rashists are robbing everybody.
No sympathies for those companies. It was a huge mistake to enter mafia land for business in the first place. It was an even bigger one, not leaving ASAP after the war started almost 2 years ago.
Anyhow, this should give the EU more incentive to confiscate mafia assets in Europe, or?
“Previously, the European Union planned to impose sanctions … although so far Brussels has not punished those who profited from the confiscation”
And they wonder why Poopin’s war and belligerence continues….
Getting rid of Hungary’s veto power would be a good first step in the right direction, and fighting fire with fire.