Russia is now using a once-American-owned food company to feed its military, raising new tensions between Moscow and Washington.
The company, Glavprodukt, a well-known producer of canned meats and vegetables, was seized by the Kremlin last October. It was the only American company fully taken over by Russia during the current political standoff.
According to a leaked letter first seen by Reuters, the company will now supply food to Russia’s Ministry of Defense and National Guard, a powerful force that reports directly to President Vladimir Putin. The letter also explains that the seizure was made to ensure a stable food supply for the military.
Glavprodukt was owned by Leonid Smirnov, a Russian-American businessman who fled the Soviet Union in the 1970s. Russian authorities have accused him of illegally moving over 1.3 billion roubles (around £12.8 million) out of the country between 2022 and 2024. Smirnov denies the allegations and called it a “Russian-style corporate raid.”
The company’s assets were officially taken on March 12 following a court ruling. The new management was reportedly chosen at the request of Druzhba Narodov, a company that used to supply food to the Russian National Guard.
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Glavprodukt, which has about 1,000 employees across three factories, has since seen a 30% drop in value and is now running at a loss for the first time ever.
Smirnov has turned to former U.S. President Donald Trump, asking him to step in and “save my company.” He warned that other American companies could face similar threats if no action is taken.
This development complicates recent efforts to improve U.S.–Russia relations. U.S. Secretary of State Marco Rubio had recently said there were “opportunities to work together,” and mentioned Glavprodukt as part of upcoming negotiations.
