The Kremlin plans to use a U.S.-owned canned food company it seized last year to supply Russian military forces, according to a letter reviewed by Reuters, adding a new layer of complexity to Washington's emerging negotiations with Moscow over the war in Ukraine and future commercial ties.
The company, Glavprodukt, based in Russia but owned by California businessman Leonid Smirnov, was placed under state control in October by presidential decree. The letter, sent to Russia's prosecutor general by Glavprodukt's new management, said the takeover was necessary to ensure consistent production for the national guard and defense ministry.
The company is the only American-owned asset in Russia to be seized under wartime decrees so far. Its expropriation, and now its proposed use to feed Russian troops, could complicate high-level efforts by the Trump administration to reset U.S.-Russia relations. Secretary of State Marco Rubio has said the Glavprodukt case "will be part of the conversation" as Washington seeks to resolve outstanding commercial disputes.
Russian authorities allege Smirnov illegally transferred 1.38 billion rubles (approximately $17 million) out of Russia between 2022 and 2024. The Moscow Arbitration Court seized Glavprodukt's assets in March, and a hearing is scheduled for Friday. Smirnov denies wrongdoing, calling the charges a "Russian-style corporate raid" and has appealed directly to President Trump, saying in a March interview, "What's happening with my company is a raid under a government seizure and confiscation attempt."
Smirnov's Universal Beverage Company, based in Los Angeles, owns Glavprodukt and other food brands. A Kremlin decree placed these assets under the control of the Federal Property Management Agency, or Rosimushchestvo, which then appointed a new director at the request of food supplier Druzhba Narodov.
Druzhba Narodov was previously named as the national guard's sole food supplier for 2019-2020, and the firm is reportedly linked to Agrocomplex, an agricultural holding company chaired by Alexander Tkachev, a former Russian agriculture minister sanctioned by the EU for supporting Moscow's annexation of Crimea.
"Universal Beverage Company categorically denies any wrongdoing in relation to the distribution of dividends from its Russian subsidiaries comprising Glavprodukt," Smirnov said in a statement issued earlier this year.
The Russian Ministry of Industry and Trade and Rosimushchestvo have not responded to requests for comment on the matter. Kommersant previously reported that Rosimushchestvo's seizure was justified under the guise of "ensuring food security."
