{"id":1371588,"date":"2022-03-11T09:11:56","date_gmt":"2022-03-11T14:11:56","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1371588"},"modified":"2022-03-11T14:16:04","modified_gmt":"2022-03-11T19:16:04","slug":"back-to-the-soviet-union-putin-threatens-to-nationalize-industries-that-stop-doing-business-in-russia","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/back-to-the-soviet-union-putin-threatens-to-nationalize-industries-that-stop-doing-business-in-russia\/","title":{"rendered":"\u2018Back To The Soviet Union\u2019: Putin Threatens To Nationalize Industries That Stop Doing Business In Russia"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fback-to-the-soviet-union-putin-threatens-to-nationalize-industries-that-stop-doing-business-in-russia%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1371588&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/dw-wp-production.imgix.net\/2021\/10\/Putin-scaled.jpg?w=1200&#038;h=800&#038;ixlib=react-9.3.0\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p>Russian President Vladimir Putin signaled that he might punish businesses owned by \u201cunfriendly nations\u201d that cease doing business in Russia by seizing their assets and possibly nationalizing their industries.<\/p>\n<p>For foreign companies \u201cplanning to close business, we must act decisively\u201d to \u201cintroduce external control and to transfer these business to those who want to work,\u201d <a href=\"https:\/\/www.foxbusiness.com\/politics\/putins-threatened-response-to-companies-ditching-russia-may-cause-even-more-economic-pain-psaki-warns\">said<\/a> Putin on Thursday. His comments were seconded by Dmitry Medvedev, vice chairman of Putin\u2019s security council, who <a href=\"https:\/\/www.nytimes.com\/2022\/03\/10\/world\/europe\/russia-economy-ukraine.html\">said<\/a> businesses leaving Russia face \u201cpossible nationalization.\u201d<\/p>\n<p>\u201cBack to the Soviet Union we go,\u201d <a href=\"https:\/\/twitter.com\/visegrad24\/status\/1501980223553908741\">responded<\/a> Visegr\u00e1d 24, a news aggregation service that focuses on Central and Eastern Europe. Similarly, Russian businessman Vladimir Potanin said such a move would \u201cbring us back 100 years, to 1917.\u201d<\/p>\n<p>If businesses cease operations in Russia and at least 25% of their stock belongs to any country designated an \u201cunfriendly nation,\u201d the government would place the business under the control of the VEB.RF, a state-owned development organization. If companies do not resume operations within five days or agree to sell, their business will be placed under external control for three months, then sold at auction.<\/p>\n<p>\u201cIf no suitable buyer can be found, the state itself would act as the buyer,\u201d <a href=\"https:\/\/twitter.com\/KevinRothrock\/status\/1501935946035445764\">wrote<\/a> Kevin Rothrock, an editor with a news outlet covering Russia. \u201cIt\u2019s going to be an absolute bonanza for corruption.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">It\u2019s going to be an absolute bonanza for corruption.<\/p>\n<p>\u2014 Kevin Rothrock (@KevinRothrock) <a href=\"https:\/\/twitter.com\/KevinRothrock\/status\/1501935946035445764?ref_src=twsrc%5Etfw\">March 10, 2022<\/a><\/p>\n<\/blockquote>\n<p>Putin\u2019s ruling United Russia Party <a href=\"https:\/\/www.washingtonpost.com\/business\/2022\/03\/10\/russia-nationalize-foreign-business-ukraine\/\">said<\/a> the move is necessary to \u201cprevent bankruptcy and preserve jobs.\u201d<\/p>\n<p>More than <a href=\"https:\/\/som.yale.edu\/story\/2022\/over-300-companies-have-withdrawn-russia-some-remain\">340 companies<\/a> have halted operations in Russia since the outbreak of military hostilities with Ukraine late last month, according to the Yale School of Management. U.S.-based companies include Goldman Sachs, Apple, IBM, McDonald\u2019s, Victoria\u2019s Secret, and Nike.<\/p>\n<p>Nationalization has a long history of turning a booming economy into one overrun by recession, not least in Russia, where successive \u201cfive-year plans\u201d left Russian citizens without the necessities or luxuries of life.<\/p>\n<p>Economic central planners <a href=\"https:\/\/www.econlib.org\/library\/Essays\/hykKnw.html\">lack the foresight<\/a> and wisdom to anticipate the needs and desires of a whole country, whose economy turns on millions of <a href=\"https:\/\/mises.org\/library\/human-action-0\">individual actions<\/a>. \u201cOwners of private firms benefit directly when innovation reduces costs and boosts profits; bureaucrats usually lack such a clear financial incentive to improve performance,\u201d <a href=\"https:\/\/www.economist.com\/finance-and-economics\/2017\/06\/17\/the-perils-of-nationalisation\">explained<\/a> The Economist in 2017. \u201cGovernment-run companies may prioritise swollen payrolls over customer satisfaction. More worryingly, state firms can become vehicles for corruption, used to dole out the largesse of the state to favoured backers or to funnel social wealth into the pockets of the powerful.\u201d<\/p>\n<p>Nationalizing private businesses discourages entrepreneurs from investing in the country, for fear the government will one day confiscate their assets.<\/p>\n<p>\u201cAny lawless decision by Russia to seize the assets of these companies will ultimately \u2026 [send] the clear message to the global business community that Russia is not a safe place to invest and do business,\u201d <a href=\"https:\/\/twitter.com\/PressSec\/status\/1502099530577289220\">tweeted<\/a> White House spokesperson Jen Psaki on Thursday night.<\/p>\n<p>Nationalization of businesses similarly failed in Venezuela, which \u201cwound up nationalizing more than 1,000 companies during Chavez\u2019s 14 years in office. The moves eventually backfired by crippling domestic production and leaving the country more reliant on imports,\u201d <a href=\"https:\/\/www.bloomberg.com\/graphics\/2019-venezuela-key-events\/\">reported<\/a> Bloomberg.<\/p>\n<p>Among the industries the Bolivarian socialist revolution nationalized were the steel industry, electricity, agriculture, banking, Jon Miltimore of FEE <a href=\"https:\/\/fee.org\/articles\/8-industries-hugo-chavez-nationalized-besides-oil-on-venezuelas-road-to-serfdom\/\">reported<\/a> that steel production subsequently reached an all-time low, Venezuelans have endured starvation and rolling blackouts, and Venezuela\u2019s currency experienced <a href=\"https:\/\/www.forbes.com\/sites\/stevehanke\/2019\/11\/13\/venezuelas-hyperinflation-drags-on-for-a-near-record36-months\/#613033236b7b\">an annual inflation rate<\/a>\u00a0of 10,398%.<\/p>\n<p>Economists say government employees simply do not understand how businesses work, which will further damage Russia\u2019s now-battered economy. Ikea \u201cfurniture is not growing inside the stores,\u201d said Maxim Mironov, a Russian economist at Madrid\u2019s IE Business School. \u201cIf you seize Ikea and Ikea isn\u2019t going to ship you products, it\u2019s not going to work!\u201d<\/p>\n<p><em>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a\u00a0<\/em><a href=\"https:\/\/www.dailywire.com\/subscribe\"><em>member<\/em><\/a><em>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Russian President Vladimir Putin signaled that he might punish businesses owned by \u201cunfriendly nations\u201d that cease doing business in Russia by seizing their assets and possibly nationalizing their industries.For foreign<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1371588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1371588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1371588"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1371588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1371588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1371588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1371588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}