Putin: External management necessary if foreign firms exit Russia

The Russian government says it has drafted legislation that introduces an “external” administration if international owners decide to close their companies in the country over its decision to invade neighbouring Ukraine.

Growing numbers of Western companies have suspended or ended operations in Russia after the United States and European countries imposed crippling economic sanctions that have already dealt a severe blow to the Russian economy, causing the rouble to plunge and prices to rise significantly.

“With regard to those who are going to close their production [in Russia], we need to act decisively here, in no cases allow any damage to local suppliers,” President Vladimir Putin told his cabinet via video link on Thursday.

“It’s necessary … to introduce external management and then transfer these enterprises to those who want to work,” he said, after Prime Minister Mikhail Mishustin said the government had prepared the draft law.

Putin also told his ministers Russia should ensure that the rights of foreign investors who chose to remain in the country are “reliably protected”.