Why Is Russia Seizing Control of European Companies?
Putin’s decree shifts Russian stakes in several Western firms to a Moscow-registered manager, as officials cite retaliation for EU sanctions and Ukraine aid.
- On September 28, President Vladimir Putin placed German retailer Metro under temporary management, expanding a campaign that previously targeted Swiss food giant Nestlé and French supermarket chain Auchan on September 17.
- The Kremlin justified the seizures as retaliation for Western involvement in military operations against Russia, citing European Union sanctions and military aid provided to Ukraine as primary drivers.
- To oversee the seized properties, Putin transferred stakes to AO L.E.V. Menedzhment, a Moscow-registered entity created in 2024 with a charter capital of approximately $177.
- A senior Russian government source warned European firms of potential future measures, telling Reuters about Italian bank UniCredit and Austrian group Raiffeisen: "Let them be scared."
- Kremlin spokesman Dmitry Peskov stated Moscow sees no reason to reverse the decisions, while executives at remaining Western companies expect the current status quo to continue in the near term.
26 Articles
26 Articles
European companies in Russia are faced with the dilemma of going on despite risks or going out at huge costs, amid increasing Russian pressure after Moscow put large companies under interim administration.
Moscow is specifically using the seizure of Western assets to blackmail European governments. According to a recent analysis, Putin is targeting sanction relief.
Moscow is specifically using the seizure of Western assets to blackmail European governments. According to a recent analysis, Putin is targeting sanction relief.
Earlier this week, Vladimir Putin issued a decree placing the Russian branch of the German company Metro under temporary control. The wholesale and retail stores followed the fate of the American concern Aptar, the French chain Auchan and the Russian representative office of the Swiss company Nestle. All of them did not leave Russia along with other Western companies after the start of the war in Ukraine, but in the past month they have been pla…
Coverage Details
Bias Distribution
- 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
