Russia seizes assets of five European companies in retaliation for Ukraine support

Russian President Vladimir Putin signed an October 15, 2026 decree placing the local Russian assets of five Western companies—including Tarkett, Ontex Ru, Menshen, Kappa Rus, and Eviosys—under temporary state management. The entities generated over 53 billion rubles ($633.2 million) in 2025 revenue. Management was assigned to Tsentr Kapital, owned by Ukraine war veteran Marat Mirkhaidarov. Moscow called the action reversible retaliation for Europe's support for Ukraine and the freezing of €210 billion in Russian sovereign reserves.

Scope of the asset seizure decree

• ▪Russian President Vladimir Putin signed a decree on October 15, 2026 placing the Russian assets of five Western companies—Tarkett, Ontex Ru, Menshen, Kappa Rus, and Eviosys—under state temporary management
• ▪Putin's October 2026 asset temporary management decree follows a similar asset seizure action taken by Russia last month against Nestle, Auchan, and Metro
• ▪Putin's October 15, 2026 Russian asset seizure decree targeted French flooring giant Tarkett, Belgian hygiene manufacturer Ontex Ru, German plastic packager Menshen, corrugated producer Kappa Rus, and metal packaging producer Eviosys
• ▪The five Western companies targeted by Putin's October 15, 2026 decree had a combined 2025 revenue in Russia exceeding 53 billion rubles ($633.2 million)

Kremlin justification for asset seizures

• ▪The Kremlin described the October 15, 2026 asset seizures as reversible retaliation for European governments' support for Ukraine and involvement in battlefield hostilities
• ▪Kremlin spokesman Dmitry Peskov stated on October 16, 2026 that Putin's October 15, 2026 asset seizures target countries involved in the illegal holding and expropriation of Russian property

Background of the new asset manager

• ▪Marat Mirkhaidarov stepped down from his Zabaikalsky regional administration post in March 2025 citing medical rehabilitation after sustaining injuries near the frontline in Ukraine
• ▪Marat Mirkhaidarov is a 47-year-old former deputy governor of the Zabaikalsky region who volunteered with Chechnya's Akhmat unit in Ukraine in early 2024
• ▪Management rights to the seized assets of Tarkett, Ontex, Menshen, Kappa Rus, and Eviosys were handed to Tsentr Kapital Management Company, a Moscow entity established in February 2026 and owned by Marat Mirkhaidarov

Responses from targeted Western companies

• ▪Ontex, which employs 350 people in Russia and operates a factory outside Moscow, stated it is considering actions to safeguard its assets and maintain operational continuity
• ▪French flooring manufacturer Tarkett stated that it is losing effective control over its operations in Russia and is assessing the situation in Russia
• ▪Sonoco stated in its 2025 report that it finalized its exit from Russia in 2022 but acquired additional Russian assets as part of its December 2024 Eviosys acquisition

Putin's remarks on economic risks

• ▪Russian President Vladimir Putin cited the 2008 global financial crisis on October 15, 2026 as an example of the risks of excessive exposure to global markets
• ▪Russian President Vladimir Putin acknowledged to Russian businessmen on October 15, 2026 that taking Western assets carries certain downsides and urged firms to seek domestic financing

Status of frozen Russian assets

• ▪European Union nations have frozen approximately €210 billion ($238 billion) in Russian sovereign assets in response to the war in Ukraine
• ▪Reports indicate that the United States could seek control of some Russian assets frozen in Europe to incentivize Russia to negotiate with Ukraine

Discussions at the European Union summit

• ▪European Union leaders expressed concerns during an October 16, 2026 summit that the United States could reduce intelligence sharing and weapons support for Kyiv
• ▪Ukrainian President Volodymyr Zelenskiy attended a European Union summit on October 16, 2026 as diplomatic ties between the bloc and Russia hit new lows