Full Breakdown
Russia Seizes Assets of European Companies Amid Heightened Ukraine Conflict
By Drooid · · How we work
Core Event: Putin Decree Places European Firms Under Temporary Russian Administration
On October 15, President Vladimir Putin signed a decree that placed the Russian operations of several European companies under temporary state administration. The decree listed the Russian assets of French flooring manufacturer Tarkett, German packaging producer Menshen, a Swedish packaging firm (identified as Sverige International Holdings by Reuters and as Kappa Rus by other reports), Belgian hygiene-product group Ontex, and the metal-packaging business Eviosys Packaging Kuban, owned by the Dutch unit of U.S.-based Sonoco. Control was transferred to the newly created management company Centre Capital (Tsentr Kapital).
Background & Context
The move relies on presidential decree No 302 (April 25 2023), which authorises temporary administration of foreign-owned assets as “retaliatory measures” for the confiscation of Russian property abroad. The mechanism was first applied in July 2023 to Carlsberg and Danone and later to Nestlé, Metro, Auchan and Leroy Merlin. The latest action follows recent EU sanctions supporting Ukraine and precedes President Zelensky’s appearance at the EU summit on October 15-16.
Timeline
- April 25 2023 – Decree No 302 establishes the framework.
- July 2023 – First targets: Carlsberg and Danone.
- September 17 – Assets of Nestlé, Metro, Auchan and Leroy Merlin placed under administration.
- October 12 – EU Council adopts its largest-ever sanctions package against Russia’s military-industrial complex.
- October 13 – Russia summons the Belgian ambassador over “aggressive statements.”
- October 15 – Putin signs the decree affecting the five European firms.
- October 16 – Public announcement; Ontex confirms receipt of the decision.
Official Statements & Responses
Kremlin spokesman Dmitry Peskov said the companies’ home countries were a factor and framed the move as a response to “illegal expropriations of Russian property.” President Putin acknowledged “certain downsides” but urged Russian businesses taking over the assets to seek domestic financing.
Ontex said a government-appointed interim administrator now controls its Russian unit and that it is investigating the situation.
Sonoco noted that its Russian assets now represent 0.5 % of its total portfolio.
Tarkett reported losing effective control over its Russian operations and is assessing the situation.
Criticism & Opposition
Western governments and legal scholars have called the takeovers unlawful expropriation and note that firms could seek compensation through international arbitration, though enforcement against the Kremlin is unlikely.
On-the-Ground Reports
Patrik Ström, the Swedish businessman who previously owned Kappa Rus, said he had lost control of the factories after the decree, describing the outcome as “crazy.” Ontex’s Russian subsidiary continues to operate under the interim administrator.
Conflicting Reports & Gaps
Sources differ on the exact number of companies affected: Reuters lists four firms, while other reports add the Swedish-owned Kappa Rus. The Swedish entity is named Sverige International Holdings in one account and Kappa Rus in another, indicating a lack of consensus on corporate identity. No independent verification of asset valuations or the legal status of the temporary administrations has been provided.
What’s Next
A Russian official has hinted that future targets may include the Russian subsidiaries of UniCredit and Raiffeisen Bank, suggesting the Kremlin could continue using asset seizures as leverage in its dispute with the EU and the United States. The EU summit on October 15-16 proceeded amid these developments, with member states discussing further sanctions and the handling of frozen Russian sovereign assets.