Russian prosecutors have taken legal action against U.S. businessman Leonid Smirnov, the owner of the seized canned food company Glavprodukt, accusing him of unlawfully moving approximately $15.5 million out of Russia over the past two years.
According to Russian business news outlet RBC, the lawsuit, filed on March 5, alleges that Smirnov and his company, Universal Beverage, transferred about 1.38 billion rubles ($15.46 million) from Russia between 2022 and 2024. This legal move comes months after Russian President Vladimir Putin issued a decree in October 2024, placing Glavprodukt and other assets owned by Universal Beverage under “temporary state management.” This effectively gave Moscow control over the company’s operations.
A Battle for Control
The lawsuit does not provide many details beyond naming Smirnov, Universal Beverage, and other associated companies as defendants. However, sources cited by RBC claim that Smirnov attempted to resist the Russian government’s takeover of his company, instructing employees not to cooperate with Rosimushchestvo, Russia’s federal property management agency.
Glavprodukt, a leading canned food manufacturer in Russia, is a subsidiary of Universal Beverage. Smirnov, who is a U.S. citizen, has been vocal about his opposition to the Russian government’s actions, describing the takeover as a “Russian-style corporate raid” aimed at seizing his business. He also alleged that prosecutors had pressured both him and his employees in an attempt to stifle resistance.
Smirnov Denies Allegations
In response to the lawsuit, Smirnov issued a statement through a representative, categorically denying any wrongdoing. He maintained that Universal Beverage’s distribution of dividends from its Russian subsidiaries was entirely legal.
Smirnov also vowed to challenge the lawsuit in Russian, U.S., and international courts, seeking justice for what he views as an unjust seizure of his business. He further urged the U.S. government to take action in protecting American-owned companies operating in Russia.
Since the seizure, Smirnov claims he has completely lost control of Glavprodukt and argues that the company’s performance has declined under the new state-appointed management.
This case highlights the increasing risks faced by foreign-owned businesses in Russia amid rising geopolitical tensions. The outcome of this lawsuit could set a precedent for other international investors still operating in the country.
