Russia has intensified its crackdown on foreign-owned businesses, with a focus on European firms. The country's government has placed the assets of Swiss food giant Nestle, German wholesaler Metro AG, and French retailer Auchan under temporary management. This move is seen as a response to the European Union's involvement in the war in Ukraine. A senior government source close to the matter stated that the time has come for asymmetric measures.
The Kremlin has accused the European Union of being involved in the war in Ukraine, citing the supply of weapons and intelligence information. Foreign Minister Sergei Lavrov claimed that Europe is waging a war against Russia. The EU has renewed sanctions on over 3,000 individuals and entities, and Russia has criticized the bloc for freezing around €210 billion of its sovereign assets.
A Russian corporate source accused European firms of deliberately stifling the development of their Russian units, ultimately harming the Russian economy. In contrast, a senior manager with a European company expressed that European businesses expect the status quo to be maintained in the immediate future. The Association of European Businesses reported having 330 member companies with operations in Russia, down from 400 a year earlier.
Since the start of the war, Russia has introduced temporary administration at 135 firms affiliated with foreign companies, mostly from EU countries. These include French food group Danone and Danish brewer Carlsberg. Prior to the latest moves, 22 Western firms had been affected, according to Russian law firm NSP.
The Kremlin stated that its decisions were driven by the increasing level of involvement of "unfriendly countries" in direct battlefield hostilities against Russia. However, the moves are described as "reversible". Kremlin spokesman Dmitry Peskov noted that there are no grounds for a reversal, as there are no reasonable voices calling for dialogue or efforts to rectify the situation.
The EU has not immediately commented on Russia's latest moves against European companies. The bloc has accused Russia of carrying out attacks on European territory and has raised concerns about a potential future Russian invasion. Moscow has denied these accusations.
The American Chamber of Commerce in Russia reported that around 300 US companies are still operating in Russia. Notably, no major US company has been targeted by similar measures, although some smaller firms have been placed under temporary administration. Russia and the US have been in discussions on business opportunities once peace is restored in Ukraine.
Key points
- Russia places assets of Nestle, Metro AG, and Auchan under temporary management
- Kremlin accuses EU of involvement in war in Ukraine
- 135 firms affiliated with foreign companies have been placed under temporary administration in Russia
