Russian court hands US-owned food company's assets to the state

A Moscow court has ruled that the assets of U.S.-owned canned food company Glavprodukt be handed over to the Russian state, the TASS news agency reported late on Friday, ending a months-long legal tussle over the company.

One participant in the court proceedings, who declined to be named, confirmed to Reuters on Monday that the court had satisfied the prosecution's claim in full with immediate effect after a six-hour court session.

The seizure of Glavprodukt, the only U.S. company Moscow has seized, coincides with stalled attempts to reset U.S.-Russian relations.

Glavprodukt and other assets ultimately owned by U.S. company Universal Beverage and founder Leonid Smirnov were placed under temporary state management by presidential decree in October 2024.

Russia has regularly justified asset seizures by labelling companies as strategic.

Russia's Prosecutor General used similar reasoning when arguing that the preliminary court hearing for Glavprodukt should be closed to the public, according to sources familiar.

Prosecutors subsequently sought to justify the seizure to ensure stable food supply in Russia, according to a letter seen by Reuters in April.

"The court ruled that the general prosecutor's case on the seizure of Glavprodukt assets and property of its head Smirnov in favour of the state be satisfied in full," TASS quoted the court as saying. "The decision comes into force immediately."

Court filings showed Universal Beverage had applied for a postponement of proceedings, but no ruling was specified. The court did not immediately respond to a request for comment. Smirnov's legal team did not immediately respond to a request for comment outside U.S. business hours.

Since being placed under state management, Glavprodukt's sales have dropped sharply and the company has started posting a regular monthly loss, according to documents seen by Reuters last week.

In spite of the state seizure aimed at securing food supplies for Russia, the new management team plans to boost dwindling sales with exports to China and North Korea, according to documents reviewed by Reuters and people familiar with the matter.
 

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