Kremlin’s Power Move: Big Car Dealership Under Russian Control

• Putin seizes Rolf, Russia’s top car dealership.
• Kremlin cites “economic expediency” for the takeover.
• Petrov’s accused money transfers raise investment concerns.

President Vladimir Putin’s administration has taken control of Rolf, Russia’s largest car dealership, placing it under temporary state management. The move, outlined in a decree published on a government website, is stated to be driven by “economic expediency” and compliance with Russian legislation amid the current international economic situation.

Rolf, founded by Russian businessman Sergei Petrov, is owned by a Cyprus-based firm and has been a prominent player in the Russian automotive industry since its establishment in the post-Soviet era. The dealership, known for selling a variety of foreign-branded cars, has become a symbol of Russia’s evolving market economy.

This seizure follows a pattern observed this year, where Moscow has temporarily taken control of several Western-owned assets in response to sanctions affecting Russian assets abroad. Notably, this is the first instance of a high-profile Russian business leader losing control of his property in this manner.

Petrov, who resides in Austria, is accused by Russian authorities of illegally moving money abroad, an allegation he vehemently denies. The Kremlin, through spokesman Dmitry Peskov, insists that the move is purely a matter of economic expediency and compliance with Russian laws.

The temporary state management of Rolf will see Alexei Gulyaev take over as the new CEO, with Svetlana Vinogradova appointed as the first deputy. Rolf has assured that the change in management will not impact its day-to-day operations and that Russia’s federal property management agency, Rosimushchestvo, aims to develop and enhance the dealership’s financial performance.

However, Petrov sees this move as a blow to Russia’s investment landscape, expressing concern about the country’s attractiveness to potential investors. He questions whether investors, especially from Asia, would be willing to risk buying stakes in Russian assets given the current environment.

Petrov suggests that the temporary management might be a guise for a broader agenda, possibly aimed at redistributing assets. He highlights the potential inefficiency of state involvement, particularly in retail operations, and emphasizes the devastating effect such moves can have on businesses.

This development adds to the complex relationship between the Russian government and prominent business figures, with Petrov having previously criticized Russia’s actions in 2014 and facing legal challenges linked to his political views. The situation surrounding Rolf reflects the intersection of economic and political factors in Russia’s business landscape.

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