Russia has targeted European companies to remove foreign ownership rights over their Russian assets, citing the EU’s involvement in the Ukraine conflict. This month, Russia placed the assets of Swiss company Nestle, German wholesaler Metro AG, and French retailer Auchan under temporary management. A senior Russian official stated that these actions are “asymmetric measures” in response to sanctions from European nations, suggesting that more companies may face similar treatment.
A corporate source in Russia accused European businesses of hindering their own Russian operations and harming the local economy. While a manager from a European firm expected things to stay the same for now, the Kremlin claimed that their decisions were due to the EU’s active support of hostilities against Russia. Kremlin spokesman Dmitry Peskov indicated that the actions could be reversed but noted the lack of dialogue from the EU.
The EU has criticized Russia for its ongoing military actions and recently renewed sanctions against over 3,000 individuals. Moscow’s officials have linked European nations to military operations, citing weapons supplies and intelligence sharing. Foreign Minister Sergei Lavrov claimed that Europe is waging war against Russia due to these actions.
The EU has frozen around €210 billion of Russian assets in reaction to the conflict and targets Russian companies in Europe. Russia has enforced temporary administration on 135 firms tied to foreign companies, mainly from the EU. Before this, only 22 Western firms were reported affected, with the number of European businesses operating in Russia decreasing significantly.
No major US company has been similarly targeted, although some smaller firms have faced temporary measures. Discussions about business opportunities in Russia are ongoing between the US and Russia, contingent upon future peace in Ukraine.
With information from Reuters
