Russian asset seizures have expanded after President Vladimir Putin signed a decree placing the Russian assets of five more European-linked companies under temporary state control, adding to a growing list of foreign businesses affected by Moscow’s response to Western sanctions over the war in Ukraine.
The latest decree covers French flooring manufacturer Tarkett, paper packaging producer Kappa Rus, hygiene products maker Ontex RU, metal packaging company Eviosys Packaging Kuban and plastics packaging manufacturer Menshen Packaging CIS. Together, the companies generate more than 50 billion roubles in annual revenue, equivalent to approximately 532 million euros, according to the figures reported in the original account.
Their assets have been placed under the interim management of Centre Capital, a company registered in February 2026. Its chief executive is listed as Marat Mirkhaydarov, a former head of the administration of the governor of Russia’s Zabaykalsky region. He left that position in 2025 after sustaining an injury during Russia’s ongoing war in Ukraine.
The affected businesses have links to several major European and international manufacturers. Kappa Rus was formerly part of Ireland’s Smurfit Kappa, while Ontex RU belongs to Belgian hygiene products group Ontex. Eviosys Packaging Kuban is associated with US-based Sonoco Products Company, and Menshen Packaging CIS is owned by German plastics producer Menshen.
All five companies continued operating in Russia after the country’s full-scale invasion of Ukraine in February 2022, leaving their local operations exposed to the risks facing foreign businesses that have maintained a presence in the Russian market.
Tarkett is among the most prominent companies affected. The French flooring manufacturer ranked third globally by floor covering sales and held a leading position in vinyl flooring, according to its 2024 annual report. It retained two factories in Russia out of its worldwide network of 34 production sites and continued paying taxes to the Russian state.
The latest seizures follow a series of similar interventions in September, when Putin placed the Russian assets of Swiss food company Nestle, German hypermarket operator Metro, French retailer Auchan and home improvement chain Leroy Merlin under temporary administration.
Those businesses were transferred to LEV Management, a company established shortly before the decision. Russian media have reported links between the company and Russia’s security services. Shortly afterwards, the Russian authorities also placed the local operations of a plastic dispensing systems manufacturer owned by French holding company Aptar Europe Holding under temporary administration.
The seizures rely on a mechanism introduced by a presidential decree in April 2023, which allows the Russian authorities to impose temporary administration on selected assets belonging to foreign companies. The first major targets included Danish brewer Carlsberg and French dairy group Danone, whose Russian operations were also taken under state-appointed management.
Although the authorities describe these arrangements as temporary administration, the measures have raised serious concerns among Western governments and international legal experts, who have characterised them as unlawful expropriation. For affected companies, the loss of control over Russian assets can create significant financial and legal complications, particularly when ownership, management and the ability to sell local operations become subject to government intervention.
Companies may, in principle, seek compensation through international arbitration under bilateral investment treaties between Russia and individual EU member states. However, securing compensation in practice remains difficult. Even when investors obtain favourable legal decisions, enforcing awards against the Russian state or its entities can be extremely challenging.
Kremlin spokesman Dmitry Peskov has explicitly connected the transfer of Nestle’s and Auchan’s assets to their origins in countries Moscow classifies as “unfriendly”. The Russian government uses that designation for the EU’s member states, the United States, the United Kingdom and other countries that imposed sanctions following the invasion of Ukraine in February 2022.
Moscow has also presented its actions partly as a response to the European Union’s decision to freeze approximately 300 billion euros in Russian sovereign assets after the invasion. The EU’s asset freeze and Russia’s takeover of foreign-owned business operations involve different legal measures, but both have become part of the wider economic confrontation between Russia and Western governments.
For foreign companies that continue to operate in Russia, the latest decree adds to the uncertainty surrounding the security of their investments. The inclusion of businesses spanning flooring, packaging and hygiene products also shows that the measures are not confined to a single industry. Instead, companies with Russian operations and links to countries designated as unfriendly face continuing risks as the conflict and sanctions dispute remain unresolved.
