Putin’s Takeover of Russia’s Largest Car Dealership Raises Eyebrows
Summary:
President Vladimir Putin asserts control over Rolf, Russia’s leading car dealership, citing economic expediency and legal compliance. The move, unprecedented in seizing a prominent Russian business, adds to a trend of Moscow taking temporary control of Western-owned assets amid sanctions. Rolf’s founder, Sergei Petrov, residing in Austria, faces accusations of illegal money transfers.
In a surprising development, President Vladimir Putin has placed Russia’s major car dealership, Rolf, under temporary state management, as reported by Reuters. The Kremlin justifies this move, stating it aligns with economic expediency and adherence to Russian legislation, against a backdrop of disrupted Russian assets due to Western sanctions.
Rolf, founded by Russian businessman Sergei Petrov and owned by a Cyprus-based firm, holds historical significance as one of the first car dealerships to emerge post the Soviet Union’s collapse. However, this seizure marks a distinctive turn as it is the first instance of a high-profile Russian business leader losing control of their property in such a manner.
The trend of Moscow temporarily taking control of Western-owned assets due to sanctions has been notable this year, affecting companies like Carlsberg and Danone. Yet, Rolf’s takeover signals a new chapter, bringing the Kremlin’s actions closer to home.
Sergei Petrov, residing in Austria, faces allegations from Russian authorities regarding the illegal movement of money abroad, vehemently denied by Petrov himself. Kremlin spokesman Dmitry Peskov emphasizes the move as a necessary step, citing Rolf’s ownership structure, which, with offshore elements, necessitated state intervention.
As a result of the seizure, Alexei Gulyaev assumes the role of Rolf’s new CEO, with Svetlana Vinogradova appointed as the first deputy. The development raises questions about the intersection of state control, business dynamics, and international economic complexities in Putin’s Russia.
