‘Let them be scared.’ Senior Russian government source says temporary takeovers of European companies’ assets are meant to pressure EU over sanctions.

A high-ranking Russian government official has stated that temporary takeovers of European companies' assets are intended to put pressure on the EU regarding sanctions, according to Reuters. The official warned that European businesses should be "scared" by these actions.

The Kremlin justified the measures, stating that the targeted companies operate in unfriendly countries and are heavily involved in military operations against Russia. Since September 17, Russian authorities have placed the assets of Auchan, Nestlé, Lemana PRO (formerly Leroy Merlin), and FM Logistic under temporary management, with L.E.V. Management in charge. On September 28, German retailer Metro was also subjected to temporary management.

European businesses have been the primary targets of this strategy, according to Reuters. While no major U.S. companies have faced similar measures, some smaller firms have had their assets placed under temporary management. A senior executive at a Western company still operating in Russia reportedly expected the status quo to persist in the near future.

The move follows President Vladimir Putin signing a law on September 17 to place the Russian assets of the four targeted European companies under temporary management, overseen by L.E.V. Management.