Russian Authorities Target Favorable Conditions for Remaining European Businesses
Russian leader Vladimir Putin has claimed that the Russian authorities aim to create favourable conditions for European companies that remained in the country after the start of the war in Ukraine, according to a report citing The Moscow Times. Speaking on the business climate, Putin claimed that Russia retains many friends in Europe who were forced by their respective governments to scale down local operations. The stated policy shift follows a series of state seizures involving major Western brands operating within Russia. In September, the Kremlin placed the Russian assets of several prominent international firms under temporary state administration. The affected corporations include Swiss food giant Nestlé, US packaging manufacturer Aptar, German retailer Metro, French retailer Auchan, logistics provider FM Logistic, and Lemana PRO, which formerly operated under the Leroy Merlin brand. The Kremlin explained the asset seizures by pointing to the corporate ownership roots in European nations that Moscow defines as unfriendly, noting that these countries are actively involved in military actions against Russia, including strikes targeting economic infrastructure facilities. In mid-October, the Russian government seized additional assets belonging to French flooring manufacturer Tarkett, one of the global leaders in the industry. Putin defended the targeted firms that managed to stay in the country, contrasting their presence with businesses that departed under pressure from Western European governments.
When some companies were leaving our country under pressure from Western European governments, our friends from those countries were almost in tears,
Putin said, according to the sourced reports. Some of them are still operating here, and we are trying to create favourable conditions for them.
Frequently Asked Questions About Western Assets in Russia
Which foreign companies have been placed under temporary state administration?
The Russian government has seized and placed the local assets of several major international brands under temporary state management, including Nestlé, Auchan, Metro, and the hardware chain formerly known as Leroy Merlin. Additional seizures targeted Aptar, FM Logistic, and flooring manufacturer Tarkett.
When did the Russian government begin seizing these corporate assets?
The latest wave of state takeovers intensified in September when Vladimir Putin signed decrees transferring control of major European and American retail and manufacturing assets to temporary state administration, followed by the seizure of Tarkett assets in mid-October.
Why did the Kremlin target these specific companies?
According to Kremlin press secretary Dmitry Peskov, the assets were seized because their owners were based in European countries that Russia considers unfriendly and which are actively involved in military actions against Russia, including strikes on economic infrastructure facilities.