The Washington Post reports that Russian President Vladimir Putin approved a plan to nationalize the assets of foreign-owned businesses that have departed the country like Apple because of its military attack on Ukraine.
Like hundreds of other companies, Apple too has limited its business in Russia as part of its anti-war measures. The Cupertino tech giant halted exports to and paused the sale of products on its official online store in the country, suspended Apple Pay and limited other services, removed RT News and Sputnik News from the App Store outside of Russia, and stopped advertising on the App Store in Russia.
And for Ukrainians, Apple disabled traffic and live incidents in Apple Maps as a safety and precautionary measure and updated Apple Maps to show Crimea as part of Ukraine, outside Russia, and has started accepting donations for humanitarian and relief efforts in Ukraine on its official online store. The tech giant said that it would take further action after assessing the situation.
“We will continue to evaluate the situation and are in communication with the relevant governments on the actions we are taking. We join all those around the world who are calling for peace.”
Apple and other companies can stop the nationalization process if they resume business in Russia
According to the report, the nationalization proposal will be presented to the parliament for discussion on Friday, March 11 which will allow the government to get a court order to impose external management for three months on the shops, factories, and other facilities left behind by companies and later they will put up for auction. The company argues that the move will “prevent bankruptcy and preserve jobs” in the country.
However, companies like Apple can prevent the nationalization of its assets by resuming their business within five days of the court order.
External management would last for three months, after which the government would put the businesses up for auction. The rule would apply to companies in which “unfriendly nations” own more than 25 percent and which “stop operations” in Russia,
Companies will be able to halt the nationalization process if they restart their businesses within five days of the court order or sell their assets in a manner that preserves the business activity and jobs, the party said.
Apple’s credit card partner Goldman Sachs has also recently announced that it is “winding down its business in Russia in compliance with regulatory and licensing requirements.”