Putin explained the Russian Federation's de facto confiscation of Western companies' assets
Russian President Vladimir Putin stated that the imposition of so-called external administration over the Russian assets of European companies Auchan, Nestlé, and Metro is a preparatory measure for a reciprocal response to the possible seizure of Russian assets in the West.
Denying accusations of nationalizing foreign businesses, Putin called such claims “lies and provocations” and added: “We are not stealing, taking, or nationalizing anything from anyone.” He accused European countries of freezing the reserves of the Russian Central Bank, claiming that they are “distributing the proceeds from the use of these reserves to fund the war,” and also asserted that certain countries “have seized and taken entire enterprises from us.”
“They took from ‘Gazprom,’ they took from ‘Rosneft,’ and from our other companies. Just look at what’s happening with ‘Lukoil.’ Well, we are creating conditions for ourselves under which, in the event of nationalization—or, in other words, the plundering of our companies—we would be able to respond in kind. This is precisely why we’re placing the companies you’re referring to under external management,” Putin said. When asked whether the owners would get their assets back in a favorable scenario, he replied, “Yes, they will.”
In late September, Russia placed the Russian divisions of the Auchan, “Lemana PRO,” FM Logistic, Nestlé, and Metro chains under external administration.
Source: Putin’s speech at the Valdai Discussion Club
On September 17, Russian dictator Vladimir Putin signed a decree transferring the Russian assets of a number of Western companies to temporary administration. The list included 100% of Auchan LLC, two Russian subsidiaries of Nestlé—“Nestlé Russia” and “Nestlé Kuban”—as well as Le Monlid LLC, which owns the “Lemana PRO” chain (formerly Leroy Merlin).
Russia may continue to place the assets of European companies that have remained active in its market under state control. Russian officials and business representatives, speaking on condition of anonymity, told Reuters this, and one high-ranking official stated bluntly: “Let them be afraid.” In recent weeks, the Russian assets of Nestlé, Metro, and Auchan have already been placed under temporary administration.
