Russia ruling party says has taken first step to nationalizing property of foreign firms

Russia is taking a step closer to cutting itself off from the rest of the world, or leaving no scope for a reversal in policy.

A new bill from Russia’s ruling United Party said a government commission has approved the first steps towards natinoalising property of foreign firms that leave Russia. The bill allows for firms more than 25% owned by foreigners from the ‘unfriendly states’ list to be put into external administration to prevent bankruptcy and save jobs.

The big shoe still to drop in the day ahead is the potential for Russia to cut off exports of raw materials. The market is clearly betting that they won’t cut off European gas because Russia needs the funds but it’s certainly a risk.