Russia has intensified pressure on European companies operating in the country by placing the Russian assets of Swiss food giant Nestlé, German wholesaler Metro AG and French retailer Auchan under temporary management.
The measures come amid worsening tensions between Moscow and the European Union over the war in Ukraine and Western sanctions imposed on Russia.
Reuters reported on Tuesday that Russia had placed the assets of the three European companies under temporary management this month. Nestlé and Auchan were placed under temporary management earlier in September, while a presidential decree published on September 28 transferred control of Metro AG’s Russian assets to UK Torg RUS, a company wholly owned by Johannes Tolay, the chief executive of Metro’s Russian business.
Metro said it no longer had operational control over its Russian subsidiary, although the business formally remains part of the German company. Metro operates 91 wholesale stores in Russia and employs about 9,000 people there, according to company information.
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The Kremlin has described the measures as temporary. They should therefore not automatically be interpreted as permanent confiscation or a formal transfer of ownership. However, Russia has previously used temporary administration to take control of foreign-owned businesses, including the Russian operations of French food group Danone and Danish brewer Carlsberg.
A senior Russian government source with direct knowledge of the latest measures told Reuters that Moscow considered the actions an “asymmetric” response to European sanctions and other measures against Russia.
“The time has come for asymmetric measures. Let them think about what measures they are taking and what sanctions they are introducing,” the source said.
Asked whether other European companies could face similar treatment, including the Russian operations of Italian bank UniCredit and Austrian lender Raiffeisen, the source did not rule out further measures.
“Let them be scared,” the official said.
The Kremlin has linked the measures to what it describes as increasing involvement by European countries in the war in Ukraine.
Kremlin spokesperson Dmitry Peskov said on Tuesday that the decisions were driven by what Moscow considers the growing involvement of “unfriendly countries” in direct battlefield hostilities against Russia.
Peskov said the measures could be reversed but indicated that there were currently no grounds for doing so.
“For now, we do not see any grounds for a reversal. We do not hear any reasonable voices calling for dialogue or for efforts to rectify the situation,” Peskov told reporters.
The European Union has strongly supported Ukraine since Russia launched its full-scale invasion in February 2022 and has imposed extensive sanctions on Moscow. The bloc last week renewed sanctions against more than 3,000 individuals and entities.
Russia has also criticised the EU for freezing about €210 billion in Russian sovereign assets in response to the war. Moscow has accused European countries of supporting Ukraine through weapons supplies and intelligence assistance, while European governments have rejected Russia’s characterisation of their support.
Since the start of the war, Russia has introduced temporary administration at 135 firms affiliated with foreign companies, the vast majority of them from EU countries, according to data compiled by Russian state news agency TASS.
The Association of European Businesses said its membership included 330 companies with operations in Russia, down from 400 a year earlier.
While many Western companies left or reduced their operations in Russia following the invasion, some have remained, citing responsibilities to employees, customers and local operations.
Russia’s latest actions add another layer of tension to its already strained relationship with Europe and raise further questions about the future of Western-owned businesses that remain in the Russian market.
