Russia plans to use Glavprodukt, a U.S.-owned canned food company seized by the Kremlin, to supply food to its army, potentially straining U.S.-Russia relations amid Ukraine war negotiations.

Axar.az, citing Reuters, reports that the company, taken from LA-based Leonid Smirnov and now controlled by Russia’s state property agency Rosimushchestvo, was allegedly involved in transferring $17 million out of Russia. Smirnov denies wrongdoing, calling it a “corporate raid.”

A letter reviewed by Reuters shows Druzhba Narodov, a company with ties to Russia’s National Guard and the Agrocomplex agricultural holding owned by EU-sanctioned Alexander Tkachev, requested the new leadership for Glavprodukt. The ownership of Druzhba Narodov is now classified, and both companies share online infrastructure, suggesting close links. This move is part of a broader trend of Russia seizing foreign-owned assets to support its prolonged war effort.