Putin Promises "Favourable Conditions" for European Firms After Seizing Foreign Assets

Russian President Vladimir Putin has said his government wants to create "favourable conditions" for European companies that stayed in the country after the start of the war in Ukraine. The remarks, reported by The Moscow Times, came shortly after a series of moves in which Russia took control of assets belonging to Western firms.

Putin argued that Russia has "many friends in Europe", though he said many of them were "forced" to scale down their local operations. He described how business partners reacted when their companies pulled out under political pressure.

"When some companies were leaving our country under pressure from Western European governments, our friends from those countries were almost in tears," he said. "Some of them are still operating here, and we are trying to create favourable conditions for them."

The statement follows a decree Putin signed in September that put the Russian holdings of several foreign companies under temporary management. The businesses named include Swiss food group Nestlé, US packaging manufacturer Aptar, German retailer Metro, French retailer Auchan, logistics company FM Logistic and Lemana PRO, which was formerly known as Leroy Merlin.

On 17 September, Putin signed a decree placing the Russian assets of Auchan, Nestlé and the chain formerly known in Russia as Leroy Merlin under temporary state administration. A separate decree covered the Russian assets of Metro.

The Kremlin justified the measures by saying the companies are tied to "unfriendly" countries that are "currently most actively involved in military actions against Russia". It also cited "strikes on economic infrastructure facilities", according to The Moscow Times. Putin's press secretary, Dmitry Peskov, later said the assets were taken because their owners are based in European countries that Russia regards as unfriendly.

In mid-October, Russia also seized the Russian assets of Tarkett, the French flooring manufacturer and one of the global leaders in its industry.

Putin's comments therefore pair a conciliatory message toward European businesses that remain in Russia with a record of recent seizures targeting companies from countries Moscow considers hostile.