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Putin Orders Seizure of Assets Belonging to Five European Companies
By Drooid · · How we work
Asset Seizure Decree Targets Five European Firms
President Vladimir Putin signed a decree that places the Russian assets of French flooring maker Tarkett and four other European firms under the temporary control of Centre Capital, a management company created in February 2026. The companies affected are Tarkett, paper-packaging producer Kappa Rus (formerly Ireland’s Smurfit Kappa), hygiene-product maker Ontex RU (part of Belgium’s Ontex group), metal-packaging manufacturer Eviosys Packaging Kuban (a unit of the U.S. Sonoco Products Company), and Menshen Packaging CIS (owned by Germany’s Menshen). Together, the seized assets generate more than 50 billion roubles (about €532 million) in annual revenue. Centre Capital’s chief executive is Marat Mirkhaydarov, a former regional administration head who left his post in 2025 after being injured in Russia’s war in Ukraine.
Background of Russia’s Asset Administration Policy
The decree builds on a mechanism introduced by a presidential order in April 2023 that allows the state to impose temporary administration over foreign-owned assets deemed “unfriendly.” Earlier in September, similar actions placed the Russian holdings of Swiss food giant Nestlé, German retailer Metro, French retailer Auchan and home-improvement chain Leroy Merlin under the control of LEV Management, a firm reported to have links to Russian security services. The latest move follows a pattern of targeting companies that continued operating in Russia after the full-scale invasion of Ukraine in February 2022.
Official Statements & International Reaction
Kremlin spokesman Dmitry Peskov linked the transfers of Nestlé’s and Auchan’s assets to their status as companies from “unfriendly countries,” a label applied to all EU members, the United States, the United Kingdom and other states that imposed sanctions after the 2022 invasion. Western governments and international legal experts have described the seizures as unlawful expropriation. They note that while affected firms could seek compensation through bilateral investment-treaty arbitration, enforcing any award against the Kremlin remains highly unlikely.
Implications and Legal Recourse
The affected firms retain operational facilities in Russia but now operate under state-appointed management, with taxes still paid to the Russian budget. The decree underscores Moscow’s broader strategy of leveraging economic pressure against nations supporting Kyiv, while raising further concerns among foreign investors about the security of assets in Russia.