Russian Decree Shifts Oversight of AkzoNobel Subsidiaries
AkzoNobel announced July 13 that its Russian subsidiaries have been placed under temporary external administration following a presidential decree signed by Russian President Vladimir Putin.
The arrangement transfers operational oversight to a designated external entity while leaving the subsidiaries’ underlying ownership unchanged. Reuters, citing Russian news agency Interfax, reported that the assets were placed under the administration of Razvitiye Stroitelnykh Aktivov, the entity that assumed control of four Rockwool factories in January.
AkzoNobel said it is reviewing the decree and assessing its implications. The company said Russia accounts for less than 2% of its revenue and is not material to its overall financial performance.
Following the introduction of European Union sanctions in 2022, AkzoNobel discontinued a significant portion of its Russian activities, including operations in several industrial coatings markets. The remaining operations were localized and ringfenced and have operated independently without financial support from Akzo Nobel N.V.
The company said it remains committed to supporting its employees and protecting its interests as shareholder of the affected subsidiaries.
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