Russia Places More European Companies’ Assets Under Temporary State Management

MOSCOW — Russia Places More European Companies’ Assets Under Temporary State Management

Russia has extended its intervention in foreign-owned businesses by placing additional European corporate assets under temporary state management, according to a decree issued by President Vladimir Putin.

The latest decision affects companies associated with France, Germany, Sweden and Belgium, creating further uncertainty for international businesses operating in Russia as relations between Moscow and European governments continue to deteriorate.

The decree lists assets belonging to French flooring manufacturer Tarkett, German packaging manufacturer Menshen, Swedish company Sverige International Holdings and Belgian hygiene products company Ontex.

It also includes Russian assets associated with Eviosys, a former European metal-packaging business acquired by U.S.-based packaging group Sonoco in December 2024. The decree identifies the assets concerned as belonging to Sonoco’s Dutch unit.

The Kremlin has previously presented its measures to take control of foreign companies’ assets as a response to what it regards as European countries’ involvement in direct battlefield hostilities in Ukraine.

Russian officials have maintained, however, that these management arrangements are temporary and can be reversed.

The latest decree comes as disagreements continue over the European Union’s response to Russia’s war in Ukraine. Among the central issues is the bloc’s decision to freeze approximately €210 billion, or $238 billion, in Russian sovereign assets.

Moscow has condemned the freezing of its state holdings and objected to measures directed at Russian companies operating in Europe and other Western countries.

The businesses covered by the new decree operate across several industrial and consumer-related sectors, including flooring, packaging and hygiene products.

For multinational companies, government intervention in local assets can raise questions about operational control and the management of investments. The latest measures add to the difficulties faced by European businesses that continue to operate in Russia amid sustained geopolitical tensions.

The decision follows a similar move last month involving Swiss food giant Nestlé and French retailers Auchan and Metro.

The repeated implementation of temporary state management measures highlights the continued exposure of foreign-owned businesses to the deteriorating relationship between Russia and Western governments.

The latest action was announced ahead of Ukrainian President Volodymyr Zelenskiy’s scheduled appearance at a European Union summit on Friday.

Its timing highlights the links between diplomatic developments surrounding the war and the commercial risks confronting international companies.

European governments continue to face questions over how to respond to Russia’s actions while addressing the financial and political consequences of frozen Russian assets. Meanwhile, businesses operating in Russia remain uncertain about the status of their property and their ability to retain control over local operations.

The decree does not establish that all affected companies have permanently lost ownership of their assets. Russian authorities have described the arrangements as temporary and reversible, although the practical consequences for each business will depend on how the measures are carried out.

The latest developments add to the wider economic confrontation between Russia and Western nations, with corporate holdings, sanctions and sovereign assets increasingly becoming points of dispute.