Putin "nationalises" Russia's largest car dealer

Russian President Vladimir Putin, by his decree, has transferred shares in Rolf, one of the largest car dealers in Russia, 100% owned by the Cypriot company Delance Ltd., to the administration of the Federal Agency for State Property Management (Rosimushchestvo).

Source: Vazhnye Istorii, a Russian media outlet.

The outlet writes that in September, the company’s former senior manager Anatoly Kairo was sentenced to eight and a half years in prison for taking almost RUB 4 billion (US$43 million) abroad.

The car dealer’s founder, Sergey Petrov, who has been put on the international wanted list, associated his persecution with a hostile takeover of the business.

In a comment to RBC, he called the company transfer to "temporary management" "legal lawlessness."

Quote: "I don't know how the Asian investors we have been expecting will invest in Russia, or how our investors in general will continue to invest and think long-term. In my opinion, the country is shooting itself in the foot," said Petrov to RBC.

He mentioned that he intends to consult lawyers regarding further actions. In April 2023, Putin signed a decree allowing the Russian government to take "temporary control" of the assets of foreign companies in Russia. This applies to companies from so-called "unfriendly" countries, which the Russian government considers to be all EU countries, including Cyprus, as well as the United States, Canada, Australia, and other countries that have imposed sanctions against Russia.

This is not the first case of the "nationalisation" of a business by Putin's decree. Previously, he transferred the management of foreigners’ stakes in Baltika (owned by Carlsberg Group) and a subsidiary of Danone to the management of Rosimushchestvo, as well as the Russian assets of the Finnish concern Fortum, as these companies had announced the sale of their assets in Russia.

At the same time, Rolf is the first case where a company whose beneficial owner is a Russian businessman has been placed under "temporary management," Latvian-based Russian media Meduza adds.

Later, the media reported that Baltika’s and Danone’s plants in Russia had been transferred to Chechen ruler Kadyrov's nephew who is also Putin’s friend.

Background:

• On 21 December, the NYT reported that Putin has managed to turn the withdrawal of Western companies from the Russian market into a "bonanza" – if companies want to leave the Russian Federation, he sets terms "in ways that benefit his government, his elites and his war."
• The NYT reported that the Kremlin has received US$1.25 billion after the withdrawal of Western companies from the Russian Federation.

Support UP or become our patron!