Thousands of Russian and foreign companies could be forced to change their name under a new law in Russia. According to a Russian newspaper, “[C]ompanies are forbidden to use the official names of countries—both Russian and foreign—as well as their derivatives.”

This law could cause trouble for foreign firms like Deutsche Bank, Nestle’s “Nestle-Russia” and British American Tobacco. Domestic companies will only be able to use “Russia” and “Russian Federation” in their name if the government owns over 75 percent of the shares.

This new law will do a number of things for Russia. The government could receive a huge amount of cash as companies that don’t change their name are landed with heavy fines. It will also give the government the opportunity to try and grab a larger stake in firms that don’t wish to change their name.

Stratfor wrote, “[T]his is just another case of Russia pushing for more pro-Russian and nationalistic policies, making the Russian name something only the state can use. But it also provides for a sort of foreign cleansing of company names. In the end, this policy deepen[s] the divide in Russia between state-run companies and everything else” (January 10).

For more information on a rising Russia, read “The Kings of the East.”