The US company Glavprodukt, specializing in canned foods and currently under Russian state control, could begin supplying products to the Russian army and National Guard, according to documents obtained by Reuters. This possibility arises at a delicate time, as Moscow and Washington explore ways to improve their diplomatic relations while the war in Ukraine continues.
Glavprodukt was seized in October 2024 and since then has been the only US-owned company officially taken over by the Russian state. It previously belonged to Los Angeles-based businessman Leonid Smirnov. Current management is under the Russian Federal Property Management Agency, Rosimushchestvo, which took control following an order from the Moscow Arbitration Court.
A document addressed to the Russian Prosecutor General’s Office by the company’s new administrators justifies the seizure as a necessary measure to ensure stable production, especially with a view to future supply contracts with the Ministry of Defense and the National Guard.
The measure, however, could strain ties between both countries. US Secretary of State Marco Rubio has already warned that the Glavprodukt case will be part of bilateral talks on a possible “restart” in relations with Russia, Reuters reports.
For his part, Smirnov denies having committed any irregularities and has described the process as a Russian-style corporate takeover attempt. According to the newspaper RBC, the Russian prosecutor’s office accuses Smirnov and his companies of having transferred approximately 1.380 billion rubles (about 17 million dollars) out of the country between 2022 and 2024.
The court hearing on the seizure is scheduled for April 18. Russian authorities, including the Ministry of Industry and Trade and Rosimushchestvo, did not respond to requests for comments on the company’s future or its new management.
A New Player Behind Glavprodukt’s Management
The review of the documents also reveals that Druzhba Narodov, a Russian food company, is behind the appointment of Glavprodukt’s new general director. This firm was the exclusive food supplier for the National Guard between 2019 and 2020, according to a 2018 press release. Until now, Glavprodukt had not been linked to military supply, according to sources close to the matter.
The ownership of Druzhba Narodov is not public, but the newspaper Kommersant reported in 2022 that the company had been acquired by entities linked to the agro-industrial group Agrocomplex N.I. Tkachev, according to information available then in the Russian corporate registry EGRUL.
The confiscation of Glavprodukt is part of a broader trend of nationalization of foreign assets. About a dozen European companies have suffered similar measures by presidential decree, including Danish brewer Carlsberg and Finnish energy company Fortum. The Kremlin has warned that new seizures could follow.
Since the beginning of the invasion of Ukraine, the conflict has lasted much longer than anticipated, leading the Kremlin to significantly increase its defense spending and seek tighter control over strategic assets, including the food supply chain.
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