Russia Expands Seizures of European Business Assets to Pressure EU Governments over Sanctions – Joint Statement by KSE Institute and B4Ukraine
The recent €11 million donation by the Russian subsidiary of Germany’s largest retailer, METRO AG, to help equip Russian troops fighting in Ukraine is a stark illustration of how Russia is increasingly weaponising the presence of Western companies in the country to exert pressure on their home governments and undermine their foreign policy objectives.
KSE Institute and the global B4Ukraine Coalition call on EU and G7 governments to incentivise companies to exit Russia swiftly and responsibly, and on businesses to leave the country without further delay.
Nezir Sinani, Executive Director of the B4Ukraine Coalition, said: "Russia’s systematic expropriation of EU companies and contributions to the Russian military underscore a fundamental miscalculation by both businesses and policymakers: the belief that business as usual was possible and that Russia would not weaponise their continued presence in the country. By seizing the assets of major Western businesses, the Kremlin is seeking to hold them hostage and use their exposure to undermine European unity on sanctions."
Andrii Onopriienko, Deputy Director for Development at KSE and Head of the LeaveRussia Project, said: “Foreign companies cannot assume that staying in Russia will protect their investments. The Kremlin can transfer control of their businesses to Russian entities, leaving the owners with little say over what happens next. METRO is a clear example. The German parent still owns the subsidiary on paper, but its Russian operations have now financed a fund supporting Russian troops. Companies must weigh the cost of leaving against the risk of losing control of their assets altogether.”
On September 28, Vladimir Putin signed a decree placing METRO's Russian business under temporary forced administration. Operational control was handed to UK Torg RUS, a company established just 20 days earlier and owned by Johannes Tholey, the longstanding head of METRO Russia.
According to sources cited by the French daily Le Monde, METRO Russia itself asked the Kremlin to place the business under “temporary administration”. METRO Russia said the move would ensure business continuity.
“That is not how anyone talks about an expropriation. That is how you talk about a deal,” said Ukraine’s Ambassador to Germany, Oleksii Makeiev, who addressed the METRO case in an op-ed for Handelsblatt on 29 October.
On October 23, METRO Russia transferred 1 billion rubles (approximately €11 million) to the “People's Front. Everything for Victory!” fund. The organisation said the money would finance vehicles, communications and reconnaissance equipment, and counter-drone systems for Russian forces.
In an official statement, METRO AG said it had neither authorised nor approved the payment. The German parent company, which formally retains ownership of its Russian subsidiary, said it had lost operational control following the September decree and distanced itself from any financial support for Russia's war against Ukraine.
“What is needed now is not more explanations, but decisive action. My appeal to German businesses — leave Russia without further delay,” Makeiev said.
According to KSE Institute's LeaveRussia database, METRO's Russian business generated approximately $3.3 billion in revenue in 2025, a 16.2% increase from 2024, and paid around $18 million in corporate profit tax to the Russian budget.
Other seized businesses had also previously donated to the People’s Front fund, the same fund that received donations from METRO. AkzoNobel’s Russian subsidiary donated 1 billion rubles, while aluminium can manufacturer Can-Pack made two payments of 500 million and 1 billion rubles in February and March, respectively. The Russian subsidiary of Danish insulation manufacturer Rockwool donated 600 million rubles to the fund.
Since January 2026, Russian authorities have intensified their campaign of forced takeovers of European corporate assets, seizing or transferring control of the Russian operations of companies including Rockwool, CanPack, AkzoNobel, DKC, Nestlé, Auchan, Lemana PRO (formerly Leroy Merlin), FM Logistic, Aptar, METRO, Tarkett, Kappa, Ontex, Sonoco and Menshen.
KSE Institute and B4Ukraine urge international companies to take immediate steps to cut ties with Russia and pursue a responsible exit. The coalition of civil society organisations also calls on EU and G7 governments to set clear standards for companies operating in Russia, require greater financial transparency, and take measures to prevent their assets and operations from being used to support Russia's war against Ukraine.