As the war in Ukraine drags into its fourth year with no end in sight, Moscow has moved to turn a seized American-owned food company into a supplier for its military, potentially derailing the fragile path toward a Russia-U.S. peace agreement.
According to the latest, Russia plans to utilize Glavprodukt – a canned food manufacturer previously owned by a Los Angeles-based entrepreneur – to support its national guard and defence ministry. The company was taken over by Russian authorities in October 2024 and is the only known American-owned business to have been placed under state control since the war began.
The move, seen by many as a provocative escalation, comes at a sensitive moment. U.S. Secretary of State Marco Rubio has warned that the United States may walk away from peace negotiations if tangible progress isn’t made imminently.
“We’re not going to continue with this endeavour for weeks and months on end,” Rubio said during a recent stop in Paris. “We need to determine very quickly—within days—whether or not this is doable.”
Rubio also confirmed that Glavprodukt’s expropriation would be part of broader conversations on resetting relations with Moscow.
Seized Assets, Strategic Purpose
Glavprodukt, once owned by Leonid Smirnov, a Russian-born American citizen, is now under the control of Russia’s federal property agency, Rosimushchestvo. A letter from Glavprodukt’s new management to the Russian prosecutor general, reviewed by Reuters, claims the seizure was critical to ensuring “stable production,” including for future use by Russia’s military apparatus.
Russian prosecutors have accused Smirnov of illegally transferring approximately 1.38 billion rubles ($17 million) out of the country between 2022 and 2024. The Moscow Arbitration Court formally seized Glavprodukt’s assets on March 12, and a hearing is scheduled for April 18. Smirnov has denied any wrongdoing, calling the move a “Russian-style corporate raid” aimed at expropriating his company.
Both the Russian prosecutor general’s office and the agencies overseeing the seizure have remained silent on the matter, despite requests for comment.
A Pattern of Strategic Seizures
Glavprodukt is not an isolated case. Over a dozen European firms, including Danish brewer Carlsberg and Finnish utility Fortum, have seen their Russian subsidiaries expropriated under presidential decrees. The Kremlin has warned that more such seizures could follow, especially as the war places increasing demands on domestic production and resource control.
When Russia first invaded Ukraine in early 2022, officials anticipated a swift operation. Instead, the prolonged conflict has drained national reserves and forced Moscow to increase defense spending while tightening its grip on industries critical to the war effort – including food production.
Who Gains?
The letter also sheds light on who stands to gain from Glavprodukt’s takeover. It states that Rosimushchestvo appointed the company’s new director at the behest of Druzhba Narodov, a food producer that served as the sole supplier to Russia’s national guard during 2019–2020.
Notably, Glavprodukt had never previously supplied the Russian military, raising questions about why it was selected now. Druzhba Narodov’s rise to prominence has a political history, according to a 2018 investigation by the late opposition figure Alexei Navalny’s Anti-Corruption Fund, then-Prime Minister Dmitry Medvedev approved the company as the national guard’s exclusive supplier back in 2017.
Although current ownership records for Druzhba Narodov are now classified, a 2022 report by Kommersant revealed links to Agrocomplex named after N. I. Tkachev, an agricultural holding associated with former Russian agriculture minister Alexander Tkachev, who was sanctioned by the European Union in 2014 for his role in the annexation of Crimea. Tkachev is now listed as Agrocomplex’s board chairman, according to the holding’s 2025 audit filings.
Corporate filings and website data further reveal shared email domains between Druzhba Narodov and Agrocomplex, suggesting an enduring connection.
According to the company’s 2025 independent audit filings, the ultimate owner of the agricultural holding is Alexander Tkachev. A former Russian agriculture minister and close Kremlin ally, Tkachev was sanctioned by the European Union in 2014 for his support of Moscow’s annexation of Crimea. He later took the reins as chairman of the holding’s board, underscoring the deep ties between Russian state power and its strategic industries.
Meanwhile, diplomatic efforts to end the grinding war in Ukraine are approaching a breaking point.
U.S. Secretary of State Marco Rubio warned on Friday that President Donald Trump is prepared to abandon negotiations for a Russia-Ukraine peace deal within days if no tangible progress is made. Speaking in Paris following high-level meetings with European and Ukrainian leaders, Rubio was blunt.
While Trump remains interested in securing a deal, Rubio made it clear that patience is running thin in Washington. During his campaign, Trump vowed to end the war within 24 hours of taking office. However, that promise has since been tempered, with expectations shifting toward a resolution by April or May amid mounting obstacles.
Rubio’s remarks indicate growing frustration in the U.S. administration as global crises, from Ukraine to the Middle East, remain unresolved and the diplomatic clock ticks loudly.
As diplomatic doors narrow and military escalation continues, the fate of one seized American company may come to symbolize the broader breakdown, or breakthrough, of relations between Washington and Moscow. But for now, the message from both sides seems to be – the window for compromise is closing fast.
