Putin Places Dutch Paint Giant Akzo Nobel’s Russian Assets Under State Control

Russian leader Vladimir Putin has signed an executive decree transferring the domestic assets of Dutch paint and coatings manufacturer Akzo Nobel to the temporary management of a state-linked enterprise, according to The Bell on July 13.

The executive order targets corporate stakes in Akzo Nobel Decor, Akzo Nobel Coatings, and Akzo Nobel Lakokraska, placing them under the direct operational control of JSC Razvitie Stroitelnykh Aktivov (RSA).

While Akzo Nobel previously maintained that it had scaled back the majority of its Russian commercial operations—including protective, marine, automotive, and aerospace coatings—The Bell reported that the company’s localized decorative paint business continued to generate substantial domestic revenue despite claims of an operational firewall separating it from the parent corporation.

These corporate declarations of isolation frequently diverged from internal financial indicators. According to reporting by the Dutch newspaper NRC cited by The Bell, Akzo Nobel’s Russian subsidiaries paid approximately €16 million ($17.5 million) in corporate income taxes to the Russian state budget during the first two years of the full-scale Russian invasion of Ukraine, with local revenue climbing 8% in 2023.

Corporate documentation revealed that the parent company continued supplying critical chemical raw materials to its Russian divisions from its international manufacturing hubs in Sweden, Vietnam, and Türkiye. Representatives for Akzo Nobel stated at the time that the revenue growth occurred contrary to internal forecasts, adding that tax compliance remained a legal obligation necessary to prevent immediate state nationalization.

Read more

Category

Business

Foreign Firms Lost $170 Billion in Russia. Here’s Why Returning Could Be Even Worse

May 06, 2025 09:24

The collective revenue for Akzo Nobel’s three Russian entities reached 17 billion rubles ($221.4 million) in 2025, a decrease from the 20.7 billion rubles ($269.6 million) recorded the previous year, according to financial accounting analyses performed by The Bell. The largest single subsidiary, Akzo Nobel Decor, accounted for 8.1 billion rubles ($105.5 million) of the total 2025 turnover.

The asset manager selected by the Kremlin, RSA, is a recently established corporate entity with close ties to the state-owned defense conglomerate Rostec . In December, the same firm assumed temporary management over the Russian manufacturing facilities of Danish insulation manufacturer Rockwool.

Under the direction of RSA Chief Executive Timur Amirov, the localized Rockwool operations subsequently transferred 600 million rubles ($7.8 million) to the All-Russia People’s Front to purchase drones, electronic warfare equipment, and tactical communication arrays for frontline military units. Amirov also publicly announced intentions to fully revive industrial partnerships with the Russian military-industrial complex that the Danish parent company had originally suspended in 2022.

The forced transfer of Akzo Nobel’s corporate holdings mirrors a wide Kremlin campaign targeting foreign manufacturing networks that resisted immediate market exit. Under executive decrees issued earlier this year, Russian authorities seized the local operations of Danish insulation manufacturer Rockwool and Polish-American packaging producer CanPack, transferring their shares to the same newly established asset manager to reallocate Western industrial infrastructure to state-aligned firms.

On the Frontline of Truth

Our reporters work on the frontlines to show what’s really happening in Ukraine. Your support helps them keep reporting.

SUPPORT