With atriums named after places like London, Paris, and Rome, Moscow’s “Evropeisky” mall was once a symbol of a Russia integrated into the global consumer market.
But, in the two weeks, since Russia invaded Ukraine, major sections of the seven-story shopping center have gone silent, with Western firms ranging from Apple to Victoria’s Secret shuttering their Russian operations.
Hundreds of corporations have declared similar plans to cut relations with Russia, with the pace picking up in the last week as the deadly conflict and humanitarian catastrophe in Ukraine deepens and Western governments tighten economic sanctions.
Russian President Vladimir Putin responded on Thursday, stating that if foreign firms decide to stop producing in Russia, he favors bringing in “outside management and subsequently transferring these companies to people who want to work.”
A new bill might allow Russian courts to appoint external administrators for enterprises that cease operations and are controlled by at least 25% foreigners. The company’s shares might be auctioned off if the owners refuse to resume operations or sell, according to the ruling United Russia party, which described it as “the first step toward nationalization.”
The Russian government is “adopting a carrot-and-stick strategy to foreign business,” according to Chris Weafer of Macro-Advisory, a consulting firm specializing in Russia, with talk of nationalization balanced out by government assistance for those who stay. The Kremlin’s aim to avert mass unemployment, according to Weafer, is a major factor.