It's an unusual move that's causing quite a stir.

After following the example of many foreign companies in Russia six weeks ago and suspending production in the country, tire manufacturer Continental is now resuming it.

The group justifies its actions in order to protect local employees and managers from “harsh criminal consequences”.

Russia not only threatens expropriation, but also imprisonment for workers if international companies stop working in the country.

Conti received a lot of criticism for his decision after the FAZ reported on Wednesday about the resumption of production.

Finally, the Dax group from Hanover gave in to Putin's threatening backdrop, although it is said to only be about "temporary" tire production "in case of need".

At the same time, the step highlights the enormous legal uncertainty that currently prevails for international companies in Russia.

threatening visits by the police

According to information from the FAZ, the Russian public prosecutor's office made representations to the Conti plant in Kaluga, southwest of Moscow, at the end of March.

There she apparently made it clear that she sees it as a breach of the law if the group does not serve local needs in the country.

Many foreign corporations are confronted with similar threats, albeit with varying degrees of intensity.

Some get mail from prosecutors, others are summoned.

The local authorities are reacting to the growing number of companies leaving Russia in protest against the invasion of Ukraine.

The need for legal advice is great, as business law firms report.

"We can no longer accept all the mandates that are offered to us," says Lothar Harings, a lawyer at the Graf von Westfalen law firm who specializes in sanctions law.

The core of the uncertainty stems from a legislative initiative by the Kremlin party United Russia, which was presented in early March.

There are fears that foreign companies will be nationalized if they cut back on their business or leave Russia.

According to Harings, the state authorities are succeeding in creating a climate in which some companies are reconsidering their decision to withdraw from the first days of the war.

"It's arbitrariness on the part of the authorities." He reports on mafia-like methods: "We often see reports of attempts at intimidation by the state.

There are threatening phone calls and visits from the police and the public prosecutor's office.” Those affected were reluctant to speak openly about it.

law has been relaxed

The "barrage of developments" that another consultant speaks of is intensified by the fact that written law and legal reality are not congruent, especially since the prospects for legal protection for companies in Russia are clouding over.

According to observers, foreign companies whose work can easily be continued because hardly any foreign expertise is required or production is not integrated into complex supply chains are particularly at risk.

In some cases, Russia had already set the appropriate course after the sanctions of 2014, when companies were pressured to localize their products.

However, Michael Harms, Managing Director of the German Business Committee on Eastern European Economic Relations, points out that "it cannot be in Moscow's interests to drive other foreign companies out of the Russian market".

Harms currently rates the danger posed by the law on external administration as “relatively low”.

The draft, which the Russian parliament is to discuss in May, "has been significantly toned down," he emphasizes.

The current version focuses on strategic companies.

Direct expropriations are not provided for in it, nor are criminal sanctions.

This casts a questionable light on Conti's decision to resume tire production in Kaluga.

Fake operation for Putin

The step is not well received in politics either.

"Russia is obviously trying to blackmail European companies into continuing their business locally," Dieter Janececk, spokesman for economic policy for the Green parliamentary group, told the FAZ. But one should not give in to the threats.

"The economic pressure on Putin must remain high so that he is persuaded to negotiate." From Janececk's point of view, coordination with international partners is necessary "so that we can equally shut down our business relationships in Russia".

How complex the situation is, however, is shown by reports from German companies on the situation on site, such as an electrical appliance manufacturer with a production network in Russia, who does not want to be named to protect employees.

Although production is at a standstill, devices will continue to be serviced and maintained.

This is to keep employees employed.

In addition, there should be “a bit of activity” on site – to keep up appearances.

Because the authorities had also reported there with clear warnings.

A machine builder is said to be preparing for expropriation by the authorities.

However, that is difficult because you hardly get any documents from the business premises.

Employees are afraid to send information to Germany because Russia might use such behavior against the people.

Conti also refers to dangers for the employees.

The group has “a duty of care for our employees in Russia”.

You have to do justice to this.

Christian Müßgens, Hamburg, Stefanie Diemand, Frankfurt, Katja Gelinsky, Berlin, Ilka Kopplin, Munich and Gustav Theile, Stuttgart report.