Seized Western firms chip in for Putin’s war
Hello! This week we look at why the former subsidiaries of Western firms, whose Russian assets were seized by the Kremlin, are now making voluntary contributions to fund the invasion of Ukraine. ‘Voluntary’ war contributions This year has seen a new trend emerge in the kind of businesses
This year has seen a shift in the businesses contributing to Russia's war efforts. Previously, it was the top oligarchs and Putin's closest allies who were footing the bill. However, now, it is the nationalized subsidiaries of Western companies that are making "voluntary" contributions to the Russian budget.
The Kremlin took control of these Western firms after seizing their assets and handed them over to new Russian managers. These new owners have shown their support for the regime by promptly making voluntary contributions to the Russian budget.
Making these contributions has a downside for the former Western owners, as it renders the entire business toxic in European courts. This makes it even more challenging for the ousted owners to challenge the seizure of their assets.
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