Russia moves to transfer control over western companies that left Russia

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Russia moves to transfer control over western companies that left Russia

Russia gave preliminary approval Tuesday on legislation that would allow the government to take control of the local businesses of western companies that decided to leave the country after its invasion of Ukraine.

The bill that could be put in place within a few weeks will transfer control over companies that left Russia due to what it considers to be anti-Russian sentiment. Tass said foreign owners would still be able to resume operations in Russia or sell their shares.

Many foreign companies have suspended their operations in Russia, while others have completely removed themselves.

The bill was approved by the State Duma, the lower house of Russia's parliament, in the first of three readings on Tuesday.

If approved, it would go to the upper house and then to Russian President Vladimir Putin.

Russia's economy ministry said it would pick up companies only in critical cases. Ukrainian Foreign Minister Dmytro Kuleba said in a statement that the law would make it even more imperative for foreign companies in Russia to leave.

He urged that it was the last chance to save not only your reputation but your property.

Nike hasn't renewed its franchise agreements in Russia.

Starbucks previously announced that it was pulling out of the Russian market, and McDonald's said it would see Russian business after more than three decades of operations there.

Starbucks has decided to leave the market and no longer has a brand presence, according to FOX Business.

McDonald's said in a statement that continued ownership of business in Russia is no longer tenable because of the humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment.

IKEA, which paused its operations, told Reuters that it was closely following the development.