A US-owned canned food company, which Russia nationalised to secure domestic food supplies, plans to boost sales by exporting to China and North Korea.

Source : Reuters

Details : Washington has stated that the treatment of Glavprodukt, the only American company Moscow has seized, will affect a planned reset of relations between the US and Russia, which has effectively been stalled.

Glavprodukt, the largest canned food producer in Russia, was founded in Los Angeles by Leonid Smirnov. The Kremlin seized it in October 2024, claiming that the company is of strategic importance to the country's food security.

Documents show that sales have plummeted. Although production has remained at the same level, the surplus of products has forced the company to look for new markets and expand its storage capacity, according to strategy documents and two sources familiar with the matter.

"They claimed they took my company to secure food for Russia. But they are not living up to this purpose, this justification," Smirnov said in a comment to Reuters.

Smirnov is challenging the nationalisation in court. The next hearing is scheduled for 11 July at the Moscow Arbitration Court.

According to documents seen by Reuters journalists, Glavprodukt's new state-appointed management proposed entering new markets in June, including North Korea and the Middle East. It also plans to increase sales to China, a market that accounted for only about one per cent of Glavprodukt's revenue last year.

The change in strategy demonstrates how Russian trade has transformed since Moscow launched a full-scale invasion of Ukraine. Trade with North Korea, China and other countries that have not imposed sanctions on Russia can be conducted outside Western control.

Background : In April 2025, Reuters reported that the Kremlin plans to use Glavprodukt to supply food to the Russian military.

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