US-owned soup company seized by Kremlin planning to supply China and North Korea

Russia has reportedly seized a US-owned food company to feed its front-line soldiers in Ukraine. The Kremlin has called the takeover of Glavprodukt, a canned food company, a necessary move to ensure constant supplies to the country's defence ministry and national guard (Picture: REUTERS)

However, Glavprodukt's sales have dramatically dropped, but their production has remained at similar levels. In a bid to rectify this, Reuters has revealed that Russia plans to supply North Korea, the Middle East, and China instead. This is despite China's market making up just 1% of Glavprodukt's sales last year. The company's new state-appointed management team will be dealing with this. Glavprodukt owner and Los Angeles-based Leonid Smirnov told Reuters: 'They claimed they took my company to secure food for Russia. But they are not living up to this purpose, this justification.' The news agency could not determine whether supplies to the army had started (Picture: GAVRIIL GRIGOROV/POOL/AFP via Getty Images)

Glavprodukt is the only US company under Kremlin control, having been seized last year. In 2023, Vladimir Putin authorised Russian authorities to seize Russian-based assets of foreign companies. The Kremlin targeted businesses in countries it deemed 'unfriendly' towards it. It was also a retaliation for the sanctions the West imposed on Russia (Picture: REUTERS)

Smirnov also told Reuters: 'Universal Beverage Company [which the Kremlin took control of last year] categorically denies any wrongdoing in relation to the distribution of dividends from its Russian subsidiaries comprising Glavprodukt.' Not long after, Russia seized all assets and cash linked to Smirnov and Glavprodukt (Picture: REUTERS)

Smirnov has also claimed his company was a target of a campaign to force its sale at a cheaper price. The LA-based owner has since appealed to President Trump to 'save' his company and 'get involved.' He told The New York Post: 'What's happening with my company is a raid under a Government seizure and confiscation attempt' (Picture: Getty Images)

Interestingly, the Kremlin's strategy shift and decision to trade with China and North Korea, especially, is due to both countries not imposing sanctions against Russia. Any deals made will have zero Western influence. In March, Russian state media reported that Russia also filed a lawsuit against Glavprodukt's owner, accusing him of withdrawing 1.38 billion rubles from Russia in the past two years. Smirnov is fighting in court to regain his company. The next hearing is scheduled for July 11 at the Moscow Court of Arbitration (Picture: REUTERS)

The now Russian-controlled Glavprodukt seems contradictory to Putin's recent announcement regarding American companies. On June 27, he revealed in Minsk that he wanted to welcome US companies back into Russia. However, on July 3, a negotiation phone call between the US and Russia ended somewhat sourly, after Trump expressed his disappointment with Putin. Marco Rubio, the US Secretary of State, previously claimed that the Kremlin's seizure of Glavprodukt would be 'part of the conversation' between Trump and Russian officials as they try and negotiate a Ukraine ceasefire deal (Picture: POOL/AFP via Getty Images)

Glavprodukt is not the only company Russia has placed under temporary management since invading Ukraine in February 2022. Danish brewer Carlsberg and French yoghurt maker Danone saw their assets sold off to Kremlin-friendly buyers at cheaper prices. Procter and Gamble and PepsiCo., two US multinational companies, are among the other companies with assets still in Russia (Picture: Kristian Tuxen Ladegaard Berg/SOPA Images/LightRocket via Getty Images)