White House warns Russia against nationalizing McDonalds, Apple, other companies pulling out over Ukraine

The Russian government and general prosecutor's office are considering a proposal to nationalize the assets of foreign companies that are suspending operations or pulling out of Russia over its invasion of Ukraine, the Russian newspaper Izvestia reported Thursday. The report included a list of nearly 60 companies, including McDonald's, Apple, IKEA, Microsoft, IBM, and Porsche. "All of these businesses have offices, buildings, factories, storefronts in Russia" that could be "forcibly taken by the state," BBC News reports.
White House Press Secretary Jen Psaki publicly warned the Kremlin last Thursday that "any lawless decision by Russia to seize the assets of these companies will ultimately result in even more economic pain for Russia." She said nationalizing foreign assets would squander any trust Russia has built up since it scared off all foreign investors in the Bolshevik Revolution.
Earlier this week, Russia effectively legalized patent theft, issuing a decree that patent protections will not be enforced for anyone affiliated with its list of "unfriendly" countries.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
President Biden, meanwhile, is expected to announce on Friday the removal of Russia's "most favored nation" trade status, in concert with the European Union and G-7 nations. That will allow the U.S. and its allies to slap tariffs on any Russian imports not already blocked by mounting sanctions. Fitch on Wednesday joined the other two major credit rating agencies and downgraded Russia's sovereign credit to junk status, warning of an "imminent" default on Russia's sovereign debt.
"The downgrades are signals to investors to steer clear of Russia," but a default "could have far more sweeping consequences, sending lenders scurrying for financial high ground and fleeing developing international markets that rely on risk-tolerant investors," The Washington Post reports. A default would also create "tremendous economic hardship for ordinary" Russians.
"Over the very short term, Russia is a pariah," said George Ball, chairman of Houston-based financial services firm Sanders Morris Harris. "Whether it's their oil, their economy or their sovereign debt, nobody wants to touch it. ... People who have assets in Russia or deposits in Russia are toast for now and for some time ahead. They can't get their hands on money or securities or goods or services. They are outcast and they will over the shorter term freeze to death."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year