Russia is using seized foreign companies to funnel billions of rubles into its war effort, Bloomberg reports

Russian authorities have placed Russian subsidiaries of foreign companies under temporary administration, and those companies are transferring billions of rubles to meet military needs, Bloomberg reported.For the most part, after a change in management, these companies have sent funds to Putin’s People’s Front, which uses the money to buy drones, vehicles, communications systems, and other equipment for Russian troops.Paint manufacturer AkzoNobel has sent about two billion rubles for military needs, according to company statements and Russian media reports. Brewing company AB InBev Efes, retailer Metro, and electrical equipment manufacturer DKC each transferred one billion rubles.The Bell reported in October that Poland’s Can-Pack, whose Russian assets were placed under temporary administration, transferred 1.5 billion rubles to the fund earlier this year in two installments. The former Russian unit of Denmark’s Rockwool transferred 600 million rubles.These payments are modest compared with state spending on the war, which is expected to exceed 17 trillion rubles this year, but they give company management a way to show their support for the authorities, Bloomberg said.The Dutch company AkzoNobel said its parent completely lost control of its Russian assets and learns about them only through media reports. Belgian-Turkish AB InBev Efes and Italian DKC Europe Srl did not comment.In recent months, Russian authorities have stepped up placing foreign companies’ assets under temporary administration. Assets transferred to temporary administration include those of retailer Auchan, food producer Nestle, the Lemana PRO chain of home improvement stores (formerly known as Leroy Merlin), retailer Metro Cash & Carry, and tobacco producer Japan Tobacco International.Russian authorities have placed the assets of more than 20 foreign companies under temporary administration since January 2025, Reuters reported in late October. The agency said nearly all the companies that lost control of their assets are European.At Meduza, we are committed to transparency about our use of artificial intelligence in the newsroom. The story you’re reading was written by one of our living, breathing journalists and translated from Russian using an AI model configured to follow our strict editorial standards. This translation process is the result of extensive testing and refinements to ensure our English-language coverage is timely and accurate. A Meduza editor reviews every draft before publication.If you find any errors in this translation, please contact us at [email protected].To read Meduza’s exclusive content in English, please subscribe to our newsletter.