The United States has condemned reports that Moscow may seize the assets of companies that have shut down operations in Russia because of the invasion of Ukraine.
White House press secretary Jen Psaki warned that such a move would lead to “more economic pain.”
Her comments come as the US Congress passed a spending bill that includes nearly $14 billion (£10.7 billion) in emergency aid to Ukraine.
President Biden is expected to announce new measures against Russia on Friday.
Russia’s seizure of foreign company assets would be a “lawless decision,” Ms Psaki said on Twitter.
“It will reinforce the clear message to the global business community that Russia is not a safe place to invest and do business,” she added.
In response to a growing number of companies going out of business, Moscow has warned against nationalizing manufacturing sites or factories where work has been suspended.
The ruling United Russia party proposed the move on Monday, although Andrei Turchak, secretary of its General Council, conceded it was an “extreme measure”.
“But we will not tolerate stabbings in the back, and we will protect our people. This is a real war, and not against Russia as a whole, but against its citizens,” Mr. Turchak said.
On Thursday, the party said President Vladimir Putin was finding “legal solutions” to implement the plan.
- How Asia is divided over Russia sanctions
- Goldman Sachs and Western Union pull out of Russia
In the face of the reports, global corporations that have cut ties with Russia or have ceased operations in Russia told the BBC they currently have no intention of changing their plans.
“We have received no indication from the Russian authorities that they intend to nationalize our assets,” a Coca-Cola spokesman said.
BP, which announced it would divest its stake in Russian state oil company Rosneft, said its “position is unchanged”.
“We have decided to exit our stake in Rosneft and our business with Rosneft in Russia and we are pursuing this. There is no change or update on this,” a spokesman said.
On Thursday, the US Congress in Washington passed a $1.5 trillion spending bill that includes nearly $14 billion in emergency aid to Ukraine.
The law is expected to be signed into law by President Biden before state funds expire Friday night.
Also on Friday, the US, along with the Group of Seven (G7) and the European Union, are expected to remove Russia’s trade status as a “most favored nation” over its invasion of Ukraine.
Removing preferential trade status would mean the US and its allies could impose tariffs on Russia, further isolating its economy.
The G7 consists of the US, UK, Japan, Germany, France, Italy and Canada.
Pushan Dutt, professor of economics and political science at INSEAD Business School, believes Russia underestimated the global response to the war.
The country was “cornered,” he said, for underestimating the Ukrainian pushback, the resulting international sanctions and the “will of NATO and the US to wage a full-fledged economic war.”
“I suspect they will go ahead and nationalize these assets because their economy is under severe pressure,” Professor Dutt told the BBC.
“When all these factories close and start laying off workers, then they also face internal pressures at home. The only way to maintain support internally is to make it an ‘us versus them’, Russia versus the world picture,” he said.
Add Comment