The law would give the government broad powers to intervene "where there is a threat to local jobs or industry," according to Reuters. It makes it "more difficult for western companies to disentangle themselves quickly unless they are prepared to take a big financial hit."

The law to seize the property of foreign investors follows an exodus of western companies, such as Starbucks (SBUX.O), McDonald’s (MCD.N) and brewer AB InBev (ABI.BR), and increases pressure on those still there.

It comes as the Russian economy, increasingly cut-off due to western sanctions, plunges into recession amid double-digit inflation.

Italian lender UniCredit (CRDI.MI), Austrian bank Raiffeisen (RBIV.VI), the world’s biggest furniture brand, IKEA, fast food chain Burger King, and hundreds of smaller firms still have businesses in Russia. Any that try to leave face this tougher line.