Moscow Retaliates as Putin Places European Corporate Assets Under Temporary State Management
Russian President Vladimir Putin has signed a decree placing the Russian assets of several major European companies under “temporary management,” in a move that further escalates Moscow’s economic countermeasures against Western businesses.
The companies affected reportedly include French retail and logistics groups Auchan, Leroy Merlin and FM Logistic, as well as Swiss food giant Nestlé.
Under Russia’s temporary-management system, control of targeted assets can be transferred from foreign parent companies to Russian-appointed administrators, limiting the owners’ ability to exercise operational and financial control over their businesses in the country.
The measure comes amid continued tensions between Moscow and Western governments over sanctions, frozen Russian assets and proposals in Europe to use immobilized Russian funds.
The Kremlin has previously used temporary state management as a mechanism to take control of assets belonging to foreign companies that have reduced or suspended their operations in Russia.
The latest move underscores the growing risks facing European companies with remaining assets in the Russian market, as economic relations between Russia and the West continue to deteriorate.