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Russia Expands Corporate Crackdown, Sending Warning to European Firms
Russia is taking control of some European companies’ businesses inside Russia.
It says this is a response to European support for Ukraine and sanctions against Russia.
A Russian official warned that more companies could be affected.
The Kremlin called the measures temporary and possibly reversible.
European companies still operating in Russia expect the current situation to continue for now.
The European Union says Russia is responsible for the war not ending.
The EU also says Russia has attacked European territory and has imposed sanctions on Russia.
The two sides disagree about who is responsible for the conflict and how business assets should be treated.
Russia placed the Russian assets of Nestlé, Metro AG and Auchan under temporary management in September.
A senior Russian government source warned that further measures could target European companies, including UniCredit and Raiffeisen units.
The Kremlin said the actions were linked to European countries’ alleged involvement in battlefield hostilities against Russia.
The European Union blames Russia for the war’s continuation and recently renewed sanctions on more than 3,000 individuals and entities.
Russia has imposed temporary administration on 135 firms affiliated with foreign companies, most of them from EU countries, according to TASS data.
- Who
- The Russian government and Kremlin are acting against European companies operating in Russia; the European Union is the opposing party in the dispute.
- What
- Russia placed several European companies’ Russian assets under temporary management and warned that additional firms could be targeted.
- Where
- The measures affect foreign companies’ operations and assets in Russia.
- When
- The latest measures and statements were reported on September 29, with the asset seizures occurring during that month.
- Why
- Russia says European countries are increasingly involved in military hostilities and have imposed sanctions, while the EU says Russia is responsible for the war’s continuation.
Russia’s position
European Union’s position
Reason for the corporate measures
Russia’s position
Russia says European countries are increasingly involved in battlefield hostilities through weapons supplies, drone production, targeting and intelligence support, and sanctions.
European Union’s position
The EU says Russia is responsible for the war’s continuation and shows no genuine intention to pursue peace talks.
Treatment of business assets
Russia’s position
Russian officials describe temporary management as an asymmetric and potentially reversible response to actions by unfriendly countries.
European Union’s position
European companies face loss of management control over their Russian operations, while the EU has not immediately commented on the latest measures.
Nature of the conflict
Russia’s position
Foreign Minister Sergei Lavrov said the use of European weapons against Russia amounts to a war being waged by Europe.
European Union’s position
The EU supports Ukraine, accuses Russia of attacks on European territory and disputes Moscow’s framing of the conflict.
Key facts
- Companies recently placed under temporary management
- Nestlé, Metro AG and Auchan
- Potential additional targets
- Russian units of UniCredit and Raiffeisen were mentioned as possible targets.
- Reported total under temporary administration
- 135 firms affiliated with foreign companies since the start of the war, according to TASS data.
- EU sanctions
- The EU renewed sanctions on more than 3,000 individuals and entities.
- Frozen Russian sovereign assets
- Russia says the EU has frozen about €210 billion.
- European business presence
- The Association of European Businesses reported 330 member companies operating in Russia, down from 400 a year earlier.
- United States business presence
- The American Chamber of Commerce in Russia estimated that around 300 US companies still operated there.
Quotes
A senior Russian government source
A senior government official with direct knowledge of the corporate measures, speaking anonymously.
““If you acknowledge that your weapons are being used against us, and we are shooting them down, call it whatever you want, but I have no doubt that this is a war being waged against us by Europe.””
CNBC TV 18
theprint.in
““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.””
CNBC TV 18
theprint.in
Sources
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