Russia places AkzoNobel paint factory under "temporary external administration"

Russia has placed the Russian subsidiaries of AkzoNobel under “temporary external administration.” The Dutch paint producer announced on Monday that it received a presidential decree to that effect and was studying its implications.

According to AkzoNobel, the decree means that its factories’ “operational oversight” will be transferred to an “external entity,” likely belonging to the Russian government, but the underlying ownership remains unchanged. The factories still belong to AkzoNobel.

AkzoNobel stressed that the measure was temporary. But according to NOS, so far, Russia has not returned a foreign company placed under state supervision.

In Russia, AkzoNobel produced paint for consumers and coatings for vehicles, ships, and aircraft. The company stressed that it “discontinued a significant part of its activities in Russia” after Russia invaded Ukraine in 2022.

AkzoNobel also separated the Russian branch from the group. Revenue from Russia accounts for less than 2 percent of AkzoNobel’s total revenue and “is not material to the company’s overall financial performance.”