EU Criticizes Russia for Placing Italian and German Company Subsidiaries Under Gazprom Management

The European Union has strongly condemned Russia's decision to place subsidiaries of Italian and German companies under the temporary management of state energy giant Gazprom. The EU said this move highlights Moscow's disregard for international norms and rules.

Italy called the Russian ambassador after Russia announced it was putting a subsidiary of the Italian heating firm Ariston Thermo Group under Gazprom's 'temporary management.' The EU called the measure "yet another proof of Russia's disregard for international law and rules" and demanded that Moscow reverse it. A similar move was announced for a subsidiary of German company BSH Hausgerate GmbH.

Since invading Ukraine in February 2022, Russia has taken the Russian subsidiaries of several Western companies under what it terms 'temporary management control.' Western officials and companies have criticized this as a nationalization of private property. The EU said Russia has created an "arbitrary and hostile" business climate for foreign investors through these actions.

Why this matters: Russia's seizure of Western companies' assets underscores the deteriorating economic relations between Moscow and the West due to the war in Ukraine. It raises concerns about the business environment in Russia and could further deter foreign investment in the country.

The EU is coordinating with the Italian and German governments in response to Russia's move against Ariston and BSH Hausgeraete. An EU spokesperson said Russia's actions confirm that it is an unpredictable actor in the economic field. The EU called on Russia to reverse the measures against the European companies and seek acceptable solutions with them.

Key Takeaways

• EU condemns Russia's decision to place EU companies under Gazprom control.
• Russia seized subsidiaries of Italian and German firms, citing 'temporary management.'
• EU calls this a violation of international law and demands Russia reverse the measures.
• Russia's actions raise concerns about the business climate and deter foreign investment.
• EU coordinates with Italy and Germany to respond to Russia's move against Ariston and BSH.