Key facts
- Russia has seized control of local units of Nestle, Auchan, and Metro.
- Assets of four smaller companies from France, Germany, Sweden, and Belgium were seized last week.
- The Russian Direct Investment Fund has one partnership with a US company, Titan International.
Russia has intensified its crackdown on European companies operating within its borders, a move attributed to Europe's support for Ukraine. In contrast, US firms have largely been spared, according to Russian officials and US business representatives. Since January 2025, President Vladimir Putin has placed 20 foreign-owned companies under temporary administration, with only three being US-linked. The remaining firms are controlled by European entities. A person close to Russian financial regulators indicated that ongoing business negotiations with Washington influenced this approach, making it less advantageous for Moscow to adopt a stringent stance against US firms compared to European ones. Russia has cited European wartime support for Ukraine and alleged involvement in "direct battlefield hostilities" as justification for these actions, including the recent seizure of assets from Swiss food group Nestle and retailers Auchan and Metro, as well as four smaller companies from France, Germany, Sweden, and Belgium. Kremlin spokesman Dmitry Peskov confirmed that the country of origin was a consideration in these decisions, linking them to "illegal expropriations of Russian property." Meanwhile, relations between Russia and the Trump administration have seen an improvement, marked by a US deal to purchase Russian diesel and discussions on other energy-related matters. US special envoy Steve Witkoff met with Putin on Wednesday to discuss the war in Ukraine, with Putin expressing interest in restoring economic ties with the US. Russian negotiator Kirill Dmitriev hailed a recent US executive order waiving sanctions as a "historic moment." US envoys have reportedly used the prospect of significant deals with Russia as leverage to encourage Putin towards a peaceful settlement. The American Chamber of Commerce in Russia estimates that approximately 300 US firms remain in the country, with its president, Robert Agee, noting that European firms were less optimistic due to European policy. The European Commission has criticized the seizures as "forced expropriation in all but name" and stated that Russia is "not a safe environment for business."