Russia seizes assets of five more European companies under interim control

Russian President Vladimir Putin has signed a decree ordering the compulsory seizure of Russian assets belonging to five European companies. The assets have been placed under interim control, according to the decree, which expands a campaign of state takeovers affecting foreign-owned businesses in Russia. The companies named include Tarkett, Kappa Rus, Ontex RU, Eviosys Packaging Kuban and Menshen Packaging CIS.

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The combined annual revenue of the five companies is said to exceed 50 billion roubles, or about 532 million euros. The assets have been assigned to a management company called Centre Capital, which was registered in February 2026. Its chief executive is listed as Marat Mirkhaydarov, a former head of the administration of the regional governor of Zabaykalsky, who stepped down in 2025 after being injured in Russia's war in Ukraine.

Tarkett is a French flooring manufacturer, while Kappa Rus was formerly part of Ireland's Smurfit Kappa. Ontex RU is linked to the Belgian Ontex group, Eviosys Packaging Kuban is part of US-based Sonoco Products Company, and Menshen Packaging CIS is owned by German plastics producer Menshen. The companies continued operating in Russia after the full-scale invasion of Ukraine in February 2022, and Tarkett kept two plants in Russia among its 34 production sites worldwide.

The move adds to a wider pattern of Russian state intervention in foreign corporate assets since the war began. In September, Russian authorities placed the assets of Nestlé, Metro, Auchan and Leroy Merlin under temporary administration, transferring them to a company called LEV Management. Russian media reported links between that company and the country's security services, while Western governments and legal experts have described the seizures as unlawful expropriation.

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The legal mechanism for such takeovers was set out in a presidential decree signed in April 2023, which authorised temporary administration over certain Russian assets of foreign companies. That framework has since been used in a series of cases involving firms that remained in the Russian market after the invasion of Ukraine. The latest decree shows that the policy remains active and continues to affect major consumer and industrial businesses with operations in Russia.

What remains unclear is whether the companies will seek compensation through international arbitration, and how the Russian authorities will manage the assets in the longer term. Companies affected by such seizures can, in principle, pursue claims under bilateral investment treaties Russia has signed with EU member states. The latest move is likely to keep attention on the risks facing foreign firms that still have assets in Russia, as well as on the broader legal and economic consequences of the Kremlin's intervention.

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