Overview
- Presidential orders signed on December 31 and published January 13 took effect upon publication, activating temporary control over the companies’ Russian subsidiaries.
- AO Razvitie stroitelnykh aktivov was appointed to manage Rockwool’s local entities, while LLC StalElement was designated to oversee Canpack’s Russian operations.
- Rockwool said authorities ordered the takeover of its subsidiary including four factories and plans to deconsolidate the unit and write down assets valued at €469 million.
- The Canpack decrees place 100% of the shares in LLC Ken-Pack and LLC Ken-Pack Packaging Plant under temporary management by StalElement.
- Analysts note that Russia has increasingly limited foreign firms’ ability to exit or realize value from local operations, including by imposing direct control in some cases.