Seized Russian Units of Western Firms Donate $86 Million to War Effort
Russian subsidiaries of Western companies, now run by new local managers, have donated 7.1 billion rubles to support the war in Ukraine. Their foreign parent firms say they no longer have oversight of the businesses.
Russian subsidiaries of Western companies that have been taken over by the state-backed local management have donated a combined 7.1 billion rubles (about $86.6 million) to support Russia's war in Ukraine. The figure comes from corporate disclosures and financial data compiled by Bloomberg and independent media. The payments allow the newly installed managers, who took operational control from foreign parent companies, to show loyalty to the Kremlin.
Who donated
The largest sum, 3 billion rubles ($36.6 million), was reportedly transferred to buy military equipment by the Russian manager of Dutch paint maker AkzoNobel, which was also handed control of Italian electrical equipment maker DKC Europe. An AkzoNobel spokesperson told Bloomberg the company has lost all visibility of its Russian operations.
The Russian unit of Polish packaging manufacturer Can-Pack gave 1.5 billion rubles ($18.3 million). The Russian joint venture of Belgian brewer AB InBev and Turkey's Anadolu Efes disclosed a donation of 1 billion rubles ($12.2 million). The Russian business of German wholesaler Metro AG announced another 1 billion rubles, while the Russian unit of Danish insulation maker Rockwool donated 600 million rubles ($7.3 million).
Where the money goes
Most of the funds went to the "Everything for Victory!" project, run by the People's Front, the political coalition led by President Vladimir Putin. Bloomberg reported that the money has paid for drones, vehicles, communications systems and other equipment for Russian troops.
Legal basis
The seizures follow a 2023 order by Putin that lets the state place assets of foreign companies from "unfriendly" countries, meaning those that support Ukraine, under temporary management. Putin has defended the step as a symmetrical response to Western sanctions and the freezing of Russian state assets abroad, and has said control could be returned under favorable conditions.
The exiled business outlet The Bell reported in October that the Russian government expects businesses to make $5.7 billion in voluntary contributions to plug a widening budget deficit amid record war spending. Russia's state military budget is projected to exceed 17 trillion rubles ($206.7 billion) this year.
