Putin seizes five more European firms, continuing Russia's hostile asset crackdown

Key Points:

• Russian President Vladimir Putin has ordered the compulsory seizure of Russian assets belonging to Tarkett and four other European companies, with combined annual revenues exceeding €532 million, transferring control to a management firm called Centre Capital.
• The decree also affects companies including Kappa Rus, Ontex RU, Eviosys Packaging Kuban, and Menshen Packaging CIS, all of which continued operations in Russia after the 2022 invasion of Ukraine.
• This move follows a precedent set in September 2023, when Russia placed assets of Nestlé, Metro, Auchan, and Leroy Merlin under temporary administration, citing ties to "unfriendly countries" that imposed sanctions on Russia.
• Western governments and legal experts condemn these seizures as unlawful expropriation, though affected companies may seek compensation through international arbitration, which remains difficult to enforce against Russia.
• The Kremlin justifies the seizures partly as retaliation for the EU freezing around €300 billion in Russian sovereign assets after the invasion of Ukraine.