Kremlin Tightens Grip on European Assets in Retaliatory Seizure

Vladimir Putin has authorized the state takeover of assets belonging to four European firms, citing the continent’s continued support for Ukraine as the catalyst. The decree targets French flooring manufacturer Tarkett, German packaging group Menshen, Sweden’s Sverige International Holdings, and Belgian hygiene product maker Ontex, placing their local operations under temporary Russian administration.

Editorial·October 16, 2026·reads: 385

Kremlin Tightens Grip on European Assets in Retaliatory Seizure

The government framed these seizures as a direct response to what it labels the illegal expropriation of Russian property abroad. By installing temporary managers from lesser-known domestic entities, Moscow has effectively stripped the parent companies of operational autonomy. Tarkett has already conceded that it no longer maintains effective control over its Russian business, while Ontex, which employs 350 people in the country, signaled it is exploring legal avenues to protect its interests.

This move follows recent similar interventions against global giants including Nestle, Auchan, and Metro. During discussions on the policy, Putin acknowledged potential economic downsides but urged domestic firms to pivot toward local financing, framing the move as a necessary hedge against global market volatility. While the Kremlin claims these measures remain reversible, the escalating cycle of property seizures underscores a widening economic schism between Russia and the West, particularly as discussions intensify regarding the possible use of frozen Russian funds to support Ukraine’s defense.