Putin expands seizure of European business in Russia: assets of French company placed under external management

Russian President Vladimir Putin has placed the Russian assets of French flooring manufacturer Tarkett and four other companies with European capital under compulsory temporary management. The combined annual revenue of the enterprises affected by the decision exceeds 50 billion rubles.

Putin signed the corresponding decree on October 15. The document was published on the official portal of legal information of the Russian Federation, reports The Moscow Times.

According to the decree, the assets have been transferred to the control of the Russian LLC "Management Company 'Center Capital'".

In particular, the company received management of 187.5 thousand ordinary and 500 thousand preferred shares of JSC "Tarkett", which belonged to the Serbian subsidiary of Tarkett from the city of Bačka Palanka. A similar stake in the French group Tarkett has also been transferred to the new manager.

In addition, the decision applies to 100 ordinary shares of JSC "Tarkett Rus" and 100% stakes in LLC "Tarkett Sommer", which were owned by the group's Russian enterprise.

Four more enterprises fell under compulsory management: paper packaging manufacturer "Kappa Rus", personal hygiene products manufacturer "Ontex RU", metal food packaging manufacturer "Eviosys Packaging Kuban" and packaging materials manufacturer "Mensen Packaging CIS".

According to financial data for 2025, the largest revenue among these enterprises was received by "Tarkett" – 19.3 billion rubles and "Kappa Rus" – 16.5 billion rubles. Together with the other three companies, the combined revenue exceeded 53 billion rubles.

French Tarkett is one of the world's largest manufacturers of flooring for residential, commercial, industrial and sports facilities. According to the company, it ranks third in the world in flooring sales and is the world leader in the vinyl materials segment.

The transfer of assets took place on the basis of Decree No. 302 of April 25, 2023. This document allows the Russian authorities to establish temporary management over the property of companies from so-called unfriendly countries in response to restrictive measures against Russia.

Formally, the mechanism does not provide for the transfer of ownership to the state or the new manager. However, foreign owners lose the ability to independently manage the enterprises, and the structure appointed by the Kremlin receives powers to manage their assets. Such a regime can only be terminated by a decision of the President of the Russian Federation.

This is another wave of forced establishment of control over foreign business in Russia. In September 2026, Putin placed under temporary management the Russian assets of Swiss Nestlé, French retail chain Auchan, logistics company FM Logistic and certain assets of the former Russian business of Leroy Merlin. At the end of the same month, a similar decision was made regarding the German chain Metro.

Previously, under this scheme, the Russian authorities established control over the assets of French Danone and the Danish brewing group Carlsberg. Later these enterprises passed to new Russian owners.

As noted by The Moscow Times, large European companies that continue to operate in Russia are increasingly becoming objects of such Kremlin decisions. The Russian authorities explain them as a response to Western sanctions and restrictions on Russian property abroad.

Based on materials from: The Moscow Times, Deutsche Welle