Moscow’s message to European business: your Russian assets are now leverage against your governments
ISW expects decisions on which firms to seize to depend entirely on Russia's relations with each company's home country.
Moscow is warning European businesses that their Russian assets can now be used as leverage against their governments, according to the Institute for the Study of War (ISW), which reported on September 30. The Kremlin has already placed well-known European retailers and food manufacturers under temporary management in Russia. A senior Russian official has hinted that European banks could be next in line.
Russia's invasion of Ukraine has seen the nation use hostages and threats as weapons, including nuclear threats against Europe and pressure tactics on neighboring nations. EU companies are now another lever in Moscow's arsenal. The Kremlin aims to make European businesses reconsider their sanctions. The strategy also provides Russia with a potential fiscal boost through the seized businesses' revenues.
The seizures, which lack an expiration date, have effectively nationalized the targeted companies, according to ISW.
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