Putin seizes assets of five more European firms in Russia

Russian President Vladimir Putin has signed a decree ordering the compulsory takeover of the Russian assets of French flooring manufacturer Tarkett and four other European companies. Their combined annual revenue exceeds 50 billion roubles (€532 million). The move continues Moscow's practice of taking control of Western-owned businesses since its full-scale invasion of Ukraine in February 2022.

The assets have been placed under interim control of a management company called Centre Capital, registered in February 2026. Its chief executive is Marat Mirkhaydarov, formerly head of the administration of the governor of Russia's Zabaykalsky region, who left that post in 2025 after an injury sustained in Russia's war in Ukraine.

Which companies are affected

The decree also covers paper packaging producer Kappa Rus, formerly part of Ireland's Smurfit Kappa; hygiene product maker Ontex RU, part of Belgium's Ontex group; metal packaging manufacturer Eviosys Packaging Kuban, part of US-based Sonoco Products Company; and Menshen Packaging CIS, owned by German plastics producer Menshen. All five kept operating in Russia after the invasion.

According to its 2024 annual report, Tarkett ranks third globally by floor covering sales and leads the vinyl flooring market. It had retained two plants in Russia out of 34 production sites worldwide and kept paying taxes to the Russian budget.

Earlier cases

The latest seizures follow similar steps in September, when Putin put the Russian assets of Swiss food group Nestlé, German hypermarket chain Metro, French retailer Auchan and home improvement chain Leroy Merlin under temporary administration. They were transferred to LEV Management, a company set up shortly before the decision and reported by Russian media to have ties to the country's security services. A maker of plastic dispensing systems owned by French holding Aptar Europe Holding was placed under temporary administration soon afterwards.

The mechanism was created by a presidential decree in April 2023, which allows temporary administration to be imposed on certain Russian assets of foreign companies. Its first targets were Danish brewer Carlsberg and French dairy group Danone. Western governments and international legal experts have called the practice unlawful expropriation. In principle, affected companies can seek compensation through international arbitration under bilateral investment treaties, though enforcing rulings against the Kremlin is nearly impossible.

Kremlin spokesman Dmitry Peskov directly tied the transfer of Nestlé's and Auchan's assets to their status as companies from what Moscow calls "unfriendly countries". That official designation covers all EU members, the US, the UK and other states that imposed sanctions after the 2022 invasion. Russia has also presented the seizures partly as a response to the EU's decision to freeze about €300 billion of Russian sovereign assets.