Moscow plans to use a seized US-owned company to feed its army, according to a document seen by Reuters. Glavprodukt, a canned food maker seized in October, will now supply food to the Russian army, potentially threatening Moscow’s warming relations with the US.
The seizure was necessary to ensure stable production, including for future supplies to the national guard and defense ministry, according to a letter reviewed by Reuters. The document reveals plans for Glavprodukt to be used to supply food to the Russian army, contradicting previous statements that the company would only provide supplies to the national guard.
The US has said its treatment of Glavprodukt will be part of conversations about resetting US-Russia relations. However, the Kremlin’s move could strain ties between the two countries. A court hearing on the company’s fate is scheduled for April 18.
Glavprodukt was seized from a Los Angeles-based businessman, Leonid Smirnov, who has denied wrongdoing and claims the seizure is a “Russian-style corporate raid”. The company’s assets were previously worth $17 million.
The move follows a trend of Russian asset seizures, including European companies like Carlsberg and Fortum. Moscow has warned of more seizures, with Russia hiking defense spending and securing tighter control of strategic assets.
A person familiar with the matter said Glavprodukt never previously supplied food to the Russian army, contradicting previous claims. The company’s new management was appointed at the request of a Russian food producer, Druzhba Narodov, which has been supplying the national guard since 2019.
The seizure is part of a larger trend of Russia using seized assets to supply its military. The move could have significant implications for US-Russia relations and global trade.
Source: https://www.reuters.com/world/europe/moscow-plans-use-seized-us-owned-company-feed-russian-army-document-shows-2025-04-17