Russia takes control over Western businesses in response to 'hostilities' and looming asset theft

Euractiv
Sun, 28 Apr 2024 14:31 UTC

© ANATOLY MALTSEV / EPA - EFE

A Gazprom office in St. Petersburg, Russia, 21 July 2022. A Russian decree transfers control over 100% of the shares in the Russian companies -- Ariston Thermo Rus, owned by Ariston Holding NV, and BSH Household Appliances, owned by BSH Hausgerate GmbH -- to Gazprom Household Systems, a subsidiary of Gazprom.

Italy on Saturday (27 April) summoned Russia's ambassador after Moscow announced it was putting a subsidiary of Italian heating firm Ariston Thermo Group under the "temporary management" of state energy giant Gazprom.

"The government requests clarification on the matter of the nationalisation of the Ariston Thermo Group," Foreign Minister Antonio Tajani said on X.

He said he asked the top official in Italy's foreign office to summon Russia's ambassador, adding that Rome was "working also with Brussels, in conjunction with Germany," after Bosch was also targeted.

Tajani earlier said he had spoken to Ariston's top managers and Rome "stands alongside businesses, ready to protect them in all international markets".

An EU spokesman condemned the measure as "yet another proof of Russia's disregard for international law and rules" and called on Moscow to reverse it.

The move was announced in a Russian decree published on Friday — although dated Thursday — and signed by President Vladimir Putin.

It transfers control over 100% of the shares in the Russian companies — Ariston Thermo Rus, owned by Ariston Holding NV, and BSH Household Appliances, owned by BSH Hausgerate GmbH — to Gazprom Household Systems, a subsidiary of Gazprom.

BSH Hausgerate told AFP it was in discussions with Gazprom Household Systems and would not be making any other comments for the time being.

Since invading Ukraine, Moscow has taken the Russian subsidiaries of a number of Western companies — notably French food giant Danone and Danish brewer Carlsberg — under what it calls "temporary management control".

It cast the moves as a response to Western sanctions on Russian companies.

Western officials and some of the companies have blasted Moscow's "nationalisation" of private property.

The EU spokesperson said Saturday: "Russia confirms to be an unpredictable actor also in the economic field, and has created a business climate which is arbitrary and hostile towards foreign investors.

"The European Union calls on Russia to reverse these measures and seek acceptable solutions with European companies targeted by them."

Comment: Reuters reports on Russia's comments:

The transfer of the Russian subsidiary of Italian water heating firm Ariston (ARIS.MI), to management by a Gazprom entity was a response to the "hostile actions" of Western countries, the Russian Embassy in Italy said in a Facebook post on Monday.

These measures "were taken in response to hostile actions, contrary to international law, by the United States and other foreign states that have joined them, aimed at illegally depriving Russia, its legal entities and various individuals of the right to property" in those countries, the post says.

The embassy added that it considered the "increasingly aggressive rhetoric and tone" of Western countries as a "deliberate intention to threaten the security of the Russian Federation".

The Italian foreign ministry called on Russia to reverse its decision "which has no basis in law," and said Foreign Minister Antonio Tajani may discuss "an appropriate response" with the G7 and Italy's EU partners.

Lest we forget that the US & EU's scheme to steal Russian assets also had 'no basis in law'.

The European Union also criticised Russia on Saturday, saying its actions against the Italian and German companies underscored Moscow's disregard for international law.

Russia has placed the assets of a handful of Western companies under "temporary management" since the start of the war in Ukraine, justifying such moves as retaliation for actions by other countries against Russian businesses.

Recent reports state that Biden's Ukraine-Israel-Taiwan & TikTok bill also included of the theft of Russian assets.

The Duran speculates that part of the reason for the West's theft of Russian assets is also to set a precedent for the theft of Chinese assets - which, one would assume, are many times greater: