Russia takes control of more European firms’ local assets

Russia has placed the local assets of several European companies, including French flooring maker Tarkett and German packaging maker Menshen, under temporary state management through a decree signed by President Vladimir Putin on Oct. 15, 2026, Reuters reported.

The move came a day before Ukrainian President Volodymyr Zelenskyy addressed European Union leaders at their summit in Brussels, where the bloc is weighing how to finance Ukraine and whether to use roughly €210 billion in frozen Russian central bank assets.

The decree also covers Sverige International Holdings, a Swedish packaging group, and Sonoco, a packaging company that Reuters listed among the targeted firms. Other reports said the order also reached Belgian hygiene-products maker Ontex and Dutch units tied to Sonoco’s acquisition of Eviosys. The outlets differ on some company details, and Canada News Media has not been able to confirm the full list from the decree itself.

The Kremlin said the measure was a response to the role of EU countries in the war in Ukraine and described it as “reversible”, according to Reuters reporting carried by Internazionale. Reuters said EU-Russia relations have hit a new low over the bloc’s support for Kyiv.

The decree relies on a 2023 Russian law that allows the state to appoint temporary administrators over the Russian operations of companies from countries Moscow considers unfriendly. Reuters said a similar step was taken last month against food giant Nestle and retailers Auchan and Metro. A Le Monde report cited by Reuters also linked the Kremlin to takeovers involving Leroy Merlin and FM Logistic.

Temporary management typically leaves the foreign owner with legal title but hands day-to-day control to a Russian-appointed manager, so owners lose access to revenue and decisions while the order stands. Some of the companies kept operating in Russia after the 2022 invasion of Ukraine, according to news reports on the decree.

The Kremlin has tied the seizures to the EU freeze on Russian sovereign assets, which stands at about €210 billion ($238 billion) according to reports. Reuters said the United States could also seek control of some of the Russian assets frozen in Europe. Western governments have been debating whether the money should be used to support Ukraine.

The decree landed as EU leaders rallied behind Zelenskyy and as governments were still negotiating the bloc’s next seven-year spending plan, a fight Canada News Media covered in EU budget talks end split as Costa takes over the text. The seizures also add to pressure on Western firms still operating in Russia, a theme in the U.S. extension of a Lukoil Bulgaria waiver.

The story is developing. Reuters had not reported a response from the affected companies or from Brussels. The EU summit concludes on Oct. 16, and any decision on the frozen assets would be taken by member governments.

Via Reuters, with details from Internazionale, Ground News summaries of TASS, Tagesschau and Euronews reporting, and The News International.

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