Putin orders seizure of Tarkett and four other European companies' Russian assets

Russian leader Vladimir Putin has signed a decree ordering the takeover of Russian assets owned by French flooring manufacturer Tarkett and four other European companies, which together generate more than RUB 50 billion (about US$596 million) in annual revenue.

Source: Russia's official legal information portal; The Moscow Times, an independent Amsterdam-based news outlet

Details: Under Putin's decree, assets belonging to French flooring manufacturer Tarkett have been transferred to the temporary management of Centre Capital Management Company.

According to the document, European owners have been forcibly stripped of 187,500 ordinary shares and 500,000 preference shares in Tarkett. The shares belonged to Tarkett's Serbian subsidiary in Bačka Palanka as well as an equivalent block of shares in Tarkett's parent company.

In addition, 100 ordinary shares in Tarkett RU and 100% of the ownership interests in Tarkett Sommer, both owned by Russian company Tarkett, have been transferred to Centre Capital.

Under the same decree, Putin ordered the seizure of assets belonging to four other European companies that had continued operating in Russia for years. The assets placed under Russian control include 12,565 shares in paper packaging manufacturer Kappa RU and the entire stakes in hygiene products maker Ontex RU, metal packaging producer Eviosys Packaging Kuban and packaging manufacturer Menshen Packaging CIS.

Tarkett is an international flooring manufacturer serving the residential, commercial, industrial and sports sectors. In its 2024 report, the company said it was the world's third-largest flooring seller and the global leader in vinyl flooring. Despite Russia's full-scale invasion of Ukraine, it continued operating two factories in Russia, out of 34 production sites worldwide, and paying taxes to the Russian state.

According to sources in the Russian government and business community who spoke to Reuters, major European companies that chose to remain in Russia have become a tool for the Kremlin to put pressure on the EU in response to sanctions and its support for Ukraine.

"The time has come for asymmetric measures. Let them think about what measures they are taking and what sanctions they are introducing," a senior Russian government official familiar with the situation told Reuters on condition of anonymity.

Commenting on potential targets, including the Russian subsidiaries of the Italian banking group UniCredit and the Austrian banking group Raiffeisen, the Russian official openly threatened foreign investors: "Let them be scared."

Background:

• On 25 April 2023, Putin signed Decree No. 302, On the temporary management of certain assets. The document justified the forced seizure of businesses as "retaliatory measures" in response to the "confiscation" of Russian property in the US and countries that had joined it. The first companies affected were the Russian subsidiaries of energy groups Uniper and Fortum.
• In July 2023, the Kremlin used the same mechanism to seize the Russian assets of French food producer Danone and Danish brewing group Carlsberg. The businesses were subsequently transferred to entities linked to the Russian authorities.
• In September 2026, the Kremlin launched a new large-scale wave of takeovers targeting European businesses. On 17 September, Putin transferred the Russian assets of Swiss food manufacturer Nestlé, French retail chain Auchan, logistics operator FM Logistics and DIY superstore chain Lemana PRO (the new brand name for the chain formerly known in Russia as Leroy Merlin). to the temporary management of an obscure company called LEV Management.
• On 21 September, a manufacturer of plastic packaging and dispensing systems owned by French holding company Aptar Europe Holding was placed under temporary management in Russia.
• On 28 September, Putin signed a decree transferring the Russian assets of German hypermarket chain Metro to the management of UK Torg Rus, a company registered just three weeks earlier with a share capital of RUB 10,000 (about US$119).

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