Russia plans to use a US-owned food company, which it recently took over, to supply its army. A document reviewed by Reuters revealed this plan. As a result, Moscow’s improving ties with Washington may suffer.

Seizure Comes During Peace Talks

The company, Glavprodukt, produces canned food. Russia seized it in October. So far, it is the only U.S.-owned firm that the Kremlin has placed under state control.

At the same time, the U.S. and Russia are holding talks to end the war in Ukraine. U.S. Secretary of State Marco Rubio stated, “Its treatment will be part of the conversation about resetting U.S.-Russia relations.”

New Leadership Plans Military Use

According to a letter seen by Reuters, Glavprodukt’s new managers said the seizure ensured steady production. Moreover, the letter mentioned possible food supply to Russia’s national guard and defence ministry.

Now, Rosimushchestvo, Russia’s state property agency, manages Glavprodukt. Earlier, the company belonged to Leonid Smirnov, a businessman based in Los Angeles.

However, both Rosimushchestvo and the Russian Ministry of Trade refused to answer questions about the firm’s new plans or management.

Russian Prosecutors Target U.S. Owner

Meanwhile, Russian prosecutors accused Smirnov and his companies of illegally moving 1.38 billion roubles ($17 million) out of the country between 2022 and 2024. The Russian newspaper RBC reported this in March.

Later, on March 12, Moscow’s Arbitration Court seized Glavprodukt’s assets. The prosecutor general’s office requested the seizure. The court will hear the case on April 18. In response, Smirnov denied all wrongdoing. He called the case a “Russian-style corporate raid” aimed at stealing his company. So far, the prosecutor general’s office has not commented.

Foreign Firms Also Affected

In addition, Russia has seized other foreign-owned companies. These include Carlsberg, a Danish beer maker, and Fortum, a Finnish utility. The Kremlin has warned that more asset takeovers could happen.

Originally, Russia expected the Ukraine war to end quickly. However, the war has now continued for over three years. As a result, Russia increased military spending and took tighter control of key assets. Back in 2022, the military even struggled to find enough food.

Powerful Supplier Enters the Picture

The letter seen by Reuters also showed who may benefit from Glavprodukt’s seizure. It revealed that Rosimushchestvo appointed a new director at the request of Druzhba Narodov, a food company.

Previously, Druzhba Narodov was the sole supplier of food to Russia’s national guard during 2019 and 2020, according to a 2018 press release. However, a source told Reuters that Glavprodukt had never supplied the Russian army before.

Earlier, in 2018, Alexei Navalny’s Anti-Corruption Foundation reported that Dmitry Medvedev, then president, approved Druzhba Narodov as the sole supplier for the national guard in 2017.

Supplier’s Ownership Remains Secret

Currently, ownership details of Druzhba Narodov are classified. But in 2022, the newspaper Kommersant reported that the company had links to Agrocomplex named after N.I. Tkachev. That report relied on publicly available records from Russia’s company database.

Reuters could not confirm this now, since the records are no longer public. Even so, both companies use email addresses ending in agrocomplex.ru, according to their websites and Russia’s Spark corporate registry. Neither Druzhba Narodov nor Agrocomplex answered Reuters’ questions.

According to 2025 audit filings reviewed by Reuters, Alexander Tkachev owns Agrocomplex. He is also chairman of its board. The European Union sanctioned him in 2014 for supporting Russia’s takeover of Crimea. In 2015, he became Russia’s agriculture minister.