Russian President Vladimir Putin claimed Russia is trying to create “favorable conditions” for European companies that stayed in the country, The Moscow Times reported. He said it on state TV weeks after his decrees put several of the largest Western businesses in Russia under Kremlin-appointed managers. Meanwhile, Russia’s own government expects investment to fall at the fastest pace in over a decade.
To keep paying for its full-scale war against Ukraine, Russia has drained reserves, borrowed more, and raised taxes. Its war spending will still rise by 27% next year, as the EU moved this month to adopt its largest sanctions package against Russia’s war industry. Fresh foreign money could ease that squeeze, and the Kremlin keeps scaring it away.
Putin: Europe’s companies left Russia in tears
Putin made the claim in an interview with Kremlin propagandist Pavel Zarubin, which Russian state outlet Vesti published on 25 October. He claimed Russia has “many friends in Europe,” but European governments forced their businesses out:
“When some companies were leaving us under pressure from Western European governments, our friends from these countries nearly cried… Some of them, by the way, are working, and we are trying to create appropriate favorable conditions for them.”
He also attacked Western sanctions, calling it stupid to ban “everything that comes from Russia.”
The decrees came first
On 17 September, Putin’s decree handed the Russian assets of Nestlé, Auchan, and the former Leroy Merlin chain to a firm run by an Interior Ministry major general. US packaging maker Aptar and German wholesaler Metro followed. In mid-October, Russia seized French flooring maker Tarkett and four more foreign-owned firms.
“A warning to companies that remain”: Russia takes control of Nestlé and Auchan’s assets – companies that stayed in Russia following the full-scale invasion of Ukraine
The Kremlin claimed their home countries are “actively involved” in fighting Russia, and Putin cited his 2023 decree on retaliating for Western moves against Russian property. Since the full-scale war began, Russia has put 135 foreign-linked firms under such management. Asked which European companies could be next, a senior Russian official said: “Let them be scared.” Metro reportedly asked to be taken over itself, hoping to keep more control over its fate.
“We don’t steal,” Putin said three weeks earlier
In early October, Putin denied that the takeovers amounted to seizures. At the Valdai Discussion Club on 1 October, he claimed: “We take nothing from anyone, we don’t steal, and we don’t nationalize… Yes, we place some enterprises under external management.”
Russia’s investment drop is the worst since 2015
Putin has demanded an urgent new “investment cycle.” Instead, his economy ministry expects investment to shrink by 5.4% this year. Russian authorities have seized assets worth 7.6 trillion rubles (about $95 billion) from their owners during the war, law firm NSP estimates. More than half of large Russian companies ended 2025 with lower profits and cut or froze investment projects.
Two rubles for the army for every one on welfare, schools, and hospitals: Russia’s 2027 wartime budget
Ukrainian long-range strikes add to the risk of building anything in Russia. Overnight on 26 October, drones attacked a Voronezh aircraft plant that makes parts for Russia’s military transport planes. A day earlier, drones reportedly hit a titanium plant in Perm Krai, and Storm Shadow missiles reportedly struck a battery plant in Yelets supplying Russia’s missiles and glide bombs.
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