Russia Confiscates US-Owned Food Company As Trump-Putin Rift Over Ukraine Grows: Report

A Russian court has ruled that the assets of Glavprodukt, a U.S.-owned food company, should be handed over to the Kremlin, as a potential reset of ties between the United States and Russia remains out of reach for now.

Following a report by the state-owned TASS news agency on Friday, Reuters confirmed on Monday that a court in Moscow accepted the prosecution’s claim in full following a six-hour-long session.

The decision has come into force immediately, according to the TASS report. "The court ruled that the general prosecutor's case on the seizure of Glavprodukt assets and property of its head Smirnov in favour of the state be satisfied in full," the agency quoted the court as saying.

Glavprodukt is owned by U.S.-based Universal Beverage and is among the leading Russian producers of canned meat, dairy, vegetables, and fish.

The company was temporarily placed under state management in 2024 by presidential decree, and its handover to the Kremlin comes at a time when President Donald Trump has grown impatient with Russian President Vladimir Putin over the ongoing Russia-Ukraine war.

The report adds that the prosecutors justified the takeover of Glavprodukt, citing the need to maintain a stable food supply in Russia.

Since being brought under state management, Glavprodukt has struggled with its sales. The new management intends to solve this through exports to China and North Korea.

This comes at a time when Trump, who promised to end the Russia-Ukraine war in a day, has been unable to bring Putin to the negotiation table. He has now promised to send Patriot missiles to Kyiv to help Ukraine defend itself.

Meanwhile, U.S. equities edged lower in Monday morning trade amid increasing trade tensions between the U.S. and its allies, such as the European Union, after Trump slapped 30% tariffs on the bloc over the weekend.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.19%, while the Invesco QQQ Trust (QQQ) fell 0.11%. Stocktwits data shows retail sentiment around the S&P 500 ETF has been in the ‘bullish’ territory over the past week.

The WisdomTree Emerging Markets High Dividend Fund (DEM), which has exposure to the Russian equity markets, was down 0.13% at the time of writing. Retail sentiment on Stocktwits around the ETF was in the ‘bearish’ territory over the past week.

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