Russia Seizes US Company’s Soup To Feed Soldiers: Report

The Russian government plans to use a seized U.S.-owned canned food company to feed its soldiers bogged down on the Ukrainian front lines, according to a new report.

Why It Matters

More than three years into Moscow’s full-scale invasion of Ukraine, the grinding military push has warped Russia’s economy and racked up hundreds of thousands of casualties in exchange for roughly a fifth of Ukrainian territory.

Russian President Vladimir Putin authorized Russian authorities in April 2023 to seize Russian-based assets of foreign companies from countries the Kremlin deemed “unfriendly.”

The move was widely seen as retaliation after Ukraine’s supporters introduced sweeping sanctions on Moscow and froze hundreds of billions of dollars’ worth of Russian assets, most of which remain held in Europe.

What To Know

A letter to Russia’s prosecutor general, seen by the Reuters news agency, said the seizure of Russian canned food giant Glavprodukt was needed to maintain a consistent flow of supplies to, among others, the country’s national guard and defense ministry, the news agency reported.

The letter was written by the new management of Glavprodukt, according to the report. Newsweek has reached out to the Kremlin for comment via email.

Glavprodukt, owned by California-based business owner Leonid Smirnov, became the only U.S.-owned company to come under Kremlin control when it was put under “temporary management” of the Russian government in October.

Glavprodukt is one of several companies under the American Universal Beverage Company umbrella. A Kremlin decree handed control of these assets to the Federal Property Management Agency, also known as Rosimushchestvo in the fall.

An unnamed source told the Russian Kommersant state-controlled newspaper at the time that Rosimushchestvo would take over to “ensure food security.”

Russian prosecutors then filed a lawsuit against Smirnov in early March, alleging he had illegally withdrawn roughly 1.38 billion rubles from Russia in the past two years, state media reported. This was roughly equivalent to $15.5 million at the time.

“Universal Beverage Company categorically denies any wrongdoing in relation to the distribution of dividends from its Russian subsidiaries comprising Glavprodukt,” Smirnov said in a statement to Reuters in early March.

A March 10 ruling then seized cash, movable property and assets linked to Smirnov and Glavprodukt. A hearing date has been set for Friday, according to the Moscow Arbitration Court.

Smirnov told The New York Post in late March he was the target of a pressure campaign, crafted to force the sale of the canned food company at a cheap price.

He then appealed to U.S. President Donald Trump “to get involved and save my company.”

“What’s happening with my company is a raid under a government seizure and confiscation attempt,” Smirnov said.

U.S. Secretary of State, Marco Rubio, previously said Russia’s seizure of Glavprodukt would be “part of the conversation” with Russian officials as the U.S. pursues an apparent rapprochement with the Kremlin and a ceasefire deal over Ukraine.

Trump’s special envoy, Steve Witkoff—who quickly emerged as the administration’s main go-between for conversations with Russia—said earlier this week after his third visit to Russia this year that there was the “possibility to reshape the Russian-United States relationship through some very compelling commercial opportunities.”

Russia’s military, while making incremental gains along the hundreds of miles of front lines, has been plagued during the invasion by problems, including shortages of key supplies such as fuel and food.

What People Are Saying

Smirnov said in an op-ed published by The Washington Times in February: “Now that President Trump is in the White House, I am genuinely hopeful that it will be returned to me in time and that no further U.S. companies will be seized.”