Russia directs money from seized Western companies towards war against Ukraine

The Russian subsidiaries of Western companies, after passing under the control of Kremlin-appointed managers, are directing billions of roubles towards financing the war against Ukraine.

Source: Bloomberg

Details: Most of the payments go to the People's Front organisation, which procures drones, vehicles, communications equipment and other gear for the Russian army.

The businesses of Dutch paint manufacturer AkzoNobel and Italian electrical equipment manufacturer DKC Europe jointly directed RUB 3 billion (approximately US$36.2 million) towards the purchase of military equipment.

The Russian subsidiary of Danish insulation manufacturer Rockwool transferred RUB 600 million (US$7.2 million). Brewing company AB InBev Efes reported a transfer of RUB 1 billion (US$12 million) in 2026.

The Russian business of German retail chain Metro, following its transfer to local management, pledged to donate a further RUB 1 billion (US$12 million).

For reference: The "temporary management" mechanism has been in effect in Russia since 2023. Formally, the assets remain the property of the foreign companies, but they lose operational control over the businesses.

Background: On 5 November, the Russian assets of Japan Tobacco International were placed under the temporary management of an entity known as Promyslovye Aktivy (Industrial Assets).

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