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EU plans sanctions on Carlsberg and Adidas seizures in Russia, Politico reports

EU plans sanctions on Carlsberg and Adidas seizures in Russia, Politico reports Illustrative photo (Photo: Getty Images)
Author: Daria Shekina

The European Commission proposes imposing sanctions against Russians who expropriated assets of foreign companies such as Carlsberg, Adidas, and Danone, according to Politico.

The Kremlin took control of the assets of foreign companies and appointed temporary managers.

Previously, the EU did not have the ability to punish individuals who benefited from asset seizures. However, this might change if the European Union governments approve the latest plans for sanctions proposed by the European Commission.

How many Western assets were seized in Russia

According to the discussed text, the European Union will be able to pursue individuals or organizations "benefiting from the compulsory transfer of ownership or control over entities established in Russia, which were previously owned or controlled by Union persons."

Russian propaganda media reported that since February 2022, the Russian state had seized 93 foreign companies and confiscated Western assets totaling over $400 million.

New state-owned companies usually end up in the hands of Kremlin affiliates. One example is 32-year-old Yakub Zakriev, a relative of Chechen leader Ramzan Kadyrov, who was appointed as the head of both Danone and the Russian branch of Carlsberg.

Sanctions against Russia
The European Union has already approved 11 packages of sanctions against the Russian Federation. These restrictions include, for example, goods that could be used in the production of weapons. Physical and legal entities responsible for the invasion of Ukraine and supporting the ongoing war have been included in these sanctions.

Currently, the EU plans to agree on a 12th package of anti-Russian sanctions, including new lists of personal restrictions and export sanctions, particularly concerning diamonds.

Recently, the European Union, in collaboration with the European Commission, presented their proposals for the 12th package of sanctions against Russia to the EU Council.