The Kremlin, perhaps under pressure from the effects of sanctions on the Russian economy, reacts with a gesture of anger and locks up the branches of the two companies. Tajani and Urso go into action
04/27/2024
Vladimir Putin he had had his finger on the button for some time. Because, as told several times by Formiche.net, the Kremlin had been ready to attack foreign companies with branches in Russia for at least two years. At least those that remained, given that the bulk of the companies packed up and left Russia before the trap was sprung. But now the button has been pushed. But the West has not stood idly by, reacting to what has all the flavor of a Soviet-style expropriation.
Background. The Russian subsidiaries of Ariston and German Bosch have been temporarily transferred to the Gazprom group. And it was President Putin who signed the decree for the transfer of the Russian subsidiaries of the two Italian and German companies to Gazprom Domestic Systems, the company of the state group Gazprom which produces household appliances, according to what the Interfax agency reported. The decree posted on the official portal for legal information concerns Ariston Thermo Rus Llc, controlled by Ariston Holding, and Bsh Household Appliances Llc, controlled by Bsh Hausgerate Gmbh. The reasons for the decision were not disclosed.
So far the facts, which tell of a gesture perhaps dictated by Moscow’s nervousness. Justified, given the increasingly tight grip of sanctions and its undoubted effects on the Russian economy. But, as mentioned, the West and, above all, Italy, reacted promptly. For example, Antonio Tajani, vice-president of the Council and foreign minister, summoned the Russian ambassador to Italy to “ask for clarification on the matter of the nationalization of the Ariston Thermo Group, after the unexpected decision of the Kremlin”. Furthermore, he “immediately activated our embassy in Russia and spoke with the top management of the Italian company”. The government, he further explained, “is at the side of companies, ready to protect them in all international markets”. It’s still, Adolfo UrsoMinister of Enterprise and Made in Italy, had a telephone conversation with Paolo Merlonipresident of Ariston, for a discussion on the ongoing situation and to express the closeness of the government, ready to protect the company at every location.
However, there is a precedent. Last year, Putin signed another decree temporarily transferring the management of the Russian subsidiaries of Danone and Carlsberg to the Federal Agency for Property Management, Rosimushchestvo. The measure was adopted after the French and Danish companies had announced their intention to exit the Russian market. 98.56% of the shares of the Russian brewery Baltika, belonging to Carlsberg, and tens of thousands of shares belonging to Danone were placed under the control of the Agency. In the case of Ariston and Borsh, however, management passes to Gazprom, another industrial group, although controlled by the government.
