The Russian President announced the temporary nationalization of Rolf, the largest car dealership in the country. The Kremlin says the justification is based on commercial logic.
Russian President Vladimir Putin has placed Russia's largest car dealership under temporary state control, under a decree published on Friday and seen by Reuters.
The Russian state justified this measure on the basis of commercial logic, but the network owner says that the decision makes investment in Russia unsustainable. Kremlin spokesman Dmitry Peskov said: “This decision is linked exclusively to economic expediency and compliance with the legislation of the Russian Federation, taking into account the international economic situation.”
Peskov added that the fact that the company, which bears the name Rolf, is based in Russia, but has an ownership regime through an “offshore” in Cyprus, forced state intervention.
Rolf was founded by Sergei Petrov and was one of the first car dealerships to appear in the country after the fall of the Soviet Union. “Interim administration means permanent administration,” Petrov said in an interview with Reuters.
He added: “This has a devastating impact on everyone. The state, as a rule, is ineffective, especially in areas such as retail.” Petrov was one of the few who criticized the damage done to Russia's relations with the West, after the annexation of Crimea in 2014. An arrest warrant was also issued for the businessman.
This temporary nationalization follows a series of nationalizations of Western corporate assets, carried out in response to sanctions imposed following the Russian invasion of Ukraine.
Among the companies targeted by these decisions are Carlsberg and Danone. However, Rolf represents the first time a Russian businessman has been affected in one of these operations. Russian authorities accuse Petrov, who lives in Austria, of illegally transferring money out of the country.
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