EU rails at Russia putting firms under ‘temporary external management’
Water-heating group and appliance manufacturer placed under Russian management by presidential decree
28 April 2024 - 19:16
byAndrew Gray and Rishabh Jaiswal
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Russian President Vladimir Putin near Moscow, Russia, April 27 2024. Picture: Sputnik/Gavriil Grigorov/Reuters
Brussels/Bengaluru — The EU criticised Russia on Saturday for putting subsidiaries of one Italian and one German company under the “temporary external management” of a Gazprom entity, saying the move underscored Moscow’s disregard for international norms.
Russian President Vladimir Putin placed the Russian subsidiaries of Italian water heating company Ariston and German appliance maker BSH Hausgeräte under JSC Gazprom Household Systems, according to a decree published on Friday.
“These measures, targeting legitimate economic activities, are yet another proof of Russia’s disregard for international law and rules,” a spokesperson for the EU’s diplomatic service said in a statement.
Italian foreign minister Antonio Tajani said the government had summoned Russia’s ambassador to provide clarification about the issue, adding that Rome was co-ordinating with Germany and EU officials in Brussels.
The EU statement said the moves confirmed that Russia, which is waging war on Ukraine, was “an unpredictable actor also in the economic field, and has created a business climate which is arbitrary and hostile towards foreign investors”.
“The European Union calls on Russia to reverse these measures and seek acceptable solutions with European companies targeted by them,” the statement said.
Ariston said on Saturday it was “extremely surprised” by the move and was assessing the implications of the decree from a governance and managerial standpoint.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
EU rails at Russia putting firms under ‘temporary external management’
Water-heating group and appliance manufacturer placed under Russian management by presidential decree
Brussels/Bengaluru — The EU criticised Russia on Saturday for putting subsidiaries of one Italian and one German company under the “temporary external management” of a Gazprom entity, saying the move underscored Moscow’s disregard for international norms.
Russian President Vladimir Putin placed the Russian subsidiaries of Italian water heating company Ariston and German appliance maker BSH Hausgeräte under JSC Gazprom Household Systems, according to a decree published on Friday.
“These measures, targeting legitimate economic activities, are yet another proof of Russia’s disregard for international law and rules,” a spokesperson for the EU’s diplomatic service said in a statement.
Italian foreign minister Antonio Tajani said the government had summoned Russia’s ambassador to provide clarification about the issue, adding that Rome was co-ordinating with Germany and EU officials in Brussels.
The EU statement said the moves confirmed that Russia, which is waging war on Ukraine, was “an unpredictable actor also in the economic field, and has created a business climate which is arbitrary and hostile towards foreign investors”.
“The European Union calls on Russia to reverse these measures and seek acceptable solutions with European companies targeted by them,” the statement said.
Ariston said on Saturday it was “extremely surprised” by the move and was assessing the implications of the decree from a governance and managerial standpoint.
Reuters
Russia approves deal for Hugo Boss to sell Russian business
Sanctions-hit Nornickel plans major shift in production
Russian oil refineries shudder under sanctions
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Sasol makes the world carbon dioxide emissions blacklist
Russia’s Gazprom buys former Shell stake in Sakhalin for $1bn
Gazprom investment in PetroSA subject to studies
Norway’s Equinor cuts shareholder payouts by $3bn
NEWS ANALYSIS: Russia faces mighty obstacle in western LNG sanctions
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.