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Moscow has revealed plans to use Glavprodukt, an American-owned canned food maker seized last October, to supply the Russian army, according to documents obtained by Reuters. This move could potentially undermine improving US-Russian relations amid ongoing negotiations to end the Ukraine conflict.
"The seizure was necessary to ensure stable production, including for future supplies to the national guard and defence ministry," states a letter from Glavprodukt's new management to Russia's prosecutor general, reviewed by Reuters.
US Secretary of State Marco Rubio has explicitly included the company's treatment in diplomatic conversations about resetting bilateral relations. Glavprodukt, now controlled by Russia's federal property management agency Rosimushchestvo, was taken from Los Angeles-based businessman Leonid Smirnov.
Russian prosecutors allege Smirnov and his companies moved approximately 1.38 billion roubles ($17 million) out of Russia between 2022-2024. The Moscow Arbitration Court seized Glavprodukt's assets on March 12, with a decisive hearing scheduled for April 18.
"This is a Russian-style corporate raid to steal my company," Smirnov stated, denying all allegations of wrongdoing.
The seizure follows a pattern affecting approximately twelve European companies whose Russian subsidiaries were expropriated by presidential decree, including Danish brewer Carlsberg and Finnish utility Fortum. The Kremlin has warned of additional asset seizures.
Documents reveal concerning connections behind the expropriation. Rosimushchestvo appointed Glavprodukt's new director at the request of food producer Druzhba Narodov, which previously served as the sole supplier to Russia's national guard for 2019-2020.
"Glavprodukt never previously supplied Russia's army," revealed a source familiar with the matter.
A 2018 investigation by Alexei Navalny's Anti-Corruption Fund exposed that then-Prime Minister Dmitry Medvedev had authorized Druzhba Narodov as the national guard's exclusive supplier in 2017.
While ownership information for Druzhba Narodov is classified, evidence suggests connections to "Agrocomplex named after N.I. Tkachev." Both entities share the same agrocomplex.ru domain for email addresses according to their websites and Russian corporate registry filings.
The holding's ultimate owner, Alexander Tkachev, was sanctioned by the European Union in 2014 for supporting Moscow's annexation of Crimea. He was subsequently appointed Russia's agriculture minister and currently serves as the holding company's board chairman.
The Ukraine war, initially planned as a quick operation, has stretched beyond three years. This prolonged conflict has pushed Russia to increase defense spending and tighten control over strategic assets, with the country scrambling for military supplies, including food, since 2022.
