Moscow Plans to Use Seized US-Owned Firm to Feed Russian Army

Moscow has taken over Glavprodukt, a US-owned food producer, and intends to use it to supply provisions to the Russian military. The action, an outright affront to US-Russia relations, comes in a larger effort to bolster Russia’s military in its ongoing war in Ukraine.

A letter from Glavprodukt’s new leadership indicates the firm will provide food to Russia’s national guard and defense ministry. Glavprodukt seizure is the first of its kind against an American-owned firm, causing serious diplomatic issues.

Glavprodukt: The seized asset

Glavprodukt, the producer of canned food, was seized by the Russian government in October and was put under Rosimushchestvo’s jurisdiction. It belonged to Los Angeles-based businessman Leonid Smirnov before the seizure.

???? U.S. Canned Food Firm Seized by Kremlin May Feed Russian Army

? Summary:

Russia plans to use Glavprodukt, a U.S.-owned canned food maker seized in 2023, to supply its army, sparking diplomatic concerns amid ongoing U.S.-Russia negotiations over Ukraine.

The firm was… pic.twitter.com/ZQJQZeVAyq

— PiQ (@PiQSuite) April 17, 2025

The US has raised its concerns regarding this action. Secretary of State Marco Rubio stated that how Russia approaches Glavprodukt would determine the state of US-Russia relations.

Role of Druzhba Narodov

Reports indicate that Rosimushchestvo named a new director general for Glavprodukt at the behest of Druzhba Narodov, a Russian food distributor to the national guard. This link points to the advantages for Russian food businesses such as Druzhba Narodov and Agrocomplex.

Although Glavprodukt has not supplied Russia’s military before, this acquisition demonstrates how economic and military interests are increasingly becoming intertwined in Russia’s policy.

Move towards state control

This seizure is just part of the overall pattern of Russia’s expropriation of assets. A number of European businesses, such as Carlsberg and Fortum, have lost their Russian businesses. The Kremlin indicated that it would continue to do so. It raises the question of the fate of foreign businesses in Russia and whether there would be further aggressions in US-Russia relations.

Political and economic repercussions

The takeover of Glavprodukt by Moscow can have long-term implications. It indicates Russia’s growing dependence on state control of strategic sectors. The US would perceive this act as an act of aggression, further delaying peace talks to end the war in Ukraine. Moscow’s actions would lead the US to become more hardline, making diplomatic solutions even more difficult.

Moscow’s acquisition of Glavprodukt and its conversion to military purposes is strategic and provocative. The Kremlin seeks to enhance its military and tighten its control over domestic assets. The action is a powerful message to the West. The US and Russia might find it increasingly difficult to reconcile as tensions escalate.