The EU is preparing sanctions against those involved in the nationalization of Danone - Politico
Source: The DairyNews
According to Politico, last Friday the European Commission discussed the introduction of sanctions against individuals who gained control over the Russian branches of European companies, including Danone, Carlsberg and Adidas.
Citing data from the Russian news agency TASS, the publication reports that since February 2022, the Russian state has gained control over 93 foreign companies and seized Western assets worth more than $400 million.
Until now, the EU has not been able to apply sanctions to those who have become beneficiaries of these processes. However, the situation will change if the bloc's governments approve the commission's latest proposals, outlined in a document obtained by Politico.
According to the text, after the introduction of sanctions, the EU will be able to pursue individuals or organizations that “benefit from the forced transfer of ownership or control over organizations created in Russia that were previously owned or controlled by persons from the European Union.”
Politico acknowledges that the EU cannot freeze or confiscate assets in Russia because its sanctions have no effect outside Europe, nor can it force new owners to return assets. However, the European Commission expects that new sanctions will discourage new owners from agreeing to such transactions with the state.
“If they make this transaction, they will automatically be included in the sanctions list with all the ensuing consequences for the company and its owners, including financial and travel restrictions , ” says Svetlana Taran, a researcher at the Center for European Policy in Brussels.
The commission's proposal would also technically allow the European owners of the expropriated company to receive compensation from the Russian state, but this is unlikely to happen as it would require Moscow to make an offer, Politico reported, citing an EU diplomat.
Until now, the EU has not been able to apply sanctions to those who have become beneficiaries of these processes. However, the situation will change if the bloc's governments approve the commission's latest proposals, outlined in a document obtained by Politico.
According to the text, after the introduction of sanctions, the EU will be able to pursue individuals or organizations that “benefit from the forced transfer of ownership or control over organizations created in Russia that were previously owned or controlled by persons from the European Union.”
Politico acknowledges that the EU cannot freeze or confiscate assets in Russia because its sanctions have no effect outside Europe, nor can it force new owners to return assets. However, the European Commission expects that new sanctions will discourage new owners from agreeing to such transactions with the state.
“If they make this transaction, they will automatically be included in the sanctions list with all the ensuing consequences for the company and its owners, including financial and travel restrictions , ” says Svetlana Taran, a researcher at the Center for European Policy in Brussels.
The commission's proposal would also technically allow the European owners of the expropriated company to receive compensation from the Russian state, but this is unlikely to happen as it would require Moscow to make an offer, Politico reported, citing an EU diplomat.
