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

Russian President Vladimir Putin has enacted a decree mandating the compulsory seizure of Russian assets held by five European firms, Tarkett, Kappa Rus, Ontex RU, Eviosys Packaging Kuban, and Menshen Packaging CIS. These entities collectively generate over 50 billion roubles (€532 million) annually. The assets are now managed by Centre Capital, a company established in February 2026, led by Marat Mirkhaydarov, who previously headed the administration of Zabaykalsky regional governor.

Notably, all five companies continued operations in Russia despite Russia's full-scale invasion in February 2022. Tarkett, a global leader in floor covering sales, retained two plants among its 34 worldwide production sites and continued tax payments to Russia. This latest round of seizures follows similar actions in September, involving Nestlé, Metro, Auchan, and Leroy Merlin, which were placed under temporary administration by LEV Management, a firm reportedly connected to Russian security services.

The seizure mechanism was established in April 2023, enabling the Russian government to take temporary control of certain foreign companies' assets. Western governments and legal experts have labeled the moves as unlawful expropriation, with companies affected potentially seeking compensation through international arbitration under existing treaties.

Kremlin spokesperson Dmitry Peskov connected the asset seizures to the EU's decision to freeze €300 billion in Russian sovereign assets following the 2022 invasion, positioning the actions as a response to Western sanctions against Russia and its allied states.