Russia Seizes Control of Glavproduct Amid Economic Sovereignty Efforts

The Russian government has taken control of Glavproduct, one of the nation’s leading canned food manufacturers, as reported by the Interfax news agency on Tuesday, referencing public corporate records.

On July 28, ownership of Glavproduct’s parent company, Promselkhozinvest LLC, was officially handed over to the Russian state, according to the Unified State Register of Legal Entities.

This action follows a legal case initiated by the Prosecutor General’s Office earlier this year, which aimed to “safeguard public interests in maintaining the country’s economic sovereignty,” as outlined in court documents. The lawsuit sought to nullify specific transactions and regain assets for the Russian government.

Glavproduct, recognized for its extensive range of over 500 canned products including meat, fish, vegetables, and condensed milk, was under the control of Promselkhozinvest, which is tied to the U.S.-based Universal Beverage Company.

Universal Beverage is owned by Leonid Smirnov, a businessman of Russian origin who emigrated from the Soviet Union in the 1970s and later returned to Russia in the 1990s.

Prosecutors allege that Smirnov illegally exported 1.3 billion rubles (approximately $15.78 million) between 2022 and 2024. They claim he began transferring assets to U.S. firms as early as 2009 and funneled net profits abroad in subsequent years.

In October 2022, President Vladimir Putin signed a decree that temporarily shifted control of Glavproduct to the Russian government, setting the stage for its complete nationalization.

In 2023, Putin also authorized the appropriation of assets in Russia belonging to companies from “unfriendly” nations in response to Western sanctions and the freezing of around $300 billion in Russian state assets.