Vladimir Putin Seizes Foreign Businesses to Fund Ukraine War
Vladimir Putin placed dozens of foreign companies under temporary state management to fund military procurement for the conflict in Ukraine.
President Vladimir Putin has placed dozens of foreign businesses under temporary state management to generate funding for the military effort in Ukraine. Utilizing a mechanism established in 2023, the Kremlin transfers operational control of companies from unfriendly countries to local managers while maintaining formal foreign ownership.
These seized units have donated billions of rubles to the People’s Front, an organization founded by Putin, to purchase drones, vehicles, and communications equipment. Recent seizures include operations from Nestlé and Japan Tobacco Inc., while other firms such as Rockwool A/S, Akzo Nobel NV, and Metro AG have made significant financial contributions.
Putin characterized these takeovers as a deterrent against Western seizures of Russian assets, stating, "We’re creating conditions for ourselves so that, in the event of nationalization — or, to call it by another name, the robbery of our companies — we’ll be able to respond in kind."
While European and Japanese firms are frequently targeted, major U.S. businesses have largely been spared as the Kremlin seeks warmer ties with the administration of Donald Trump.
