News about foreign investment

Russian President Vladimir Putin has signed a decree ordering the compulsory seizure of assets belonging to five Western companies: Tarkett (France), Kappa Rus, Ontex RU, Eviosys Packaging Kuban and Menshen Packaging CIS. The assets have been placed under temporary management by Centre Capital, and all five companies continue operating in Russia, with combined annual revenue above 50 billion rubles (593.8 million USD). This follows a similar series of moves in September, when assets of Nestlé, Metro, Auchan and Leroy Merlin were placed under temporary management. Western governments call the seizures illegal expropriation; affected companies could seek compensation through international arbitration under bilateral investment treaties, but enforcing a ruling against the Kremlin is nearly impossible.