Putin decree puts AkzoNobel’s Russian arm under state control

The Kremlin has placed Russian subsidiaries of Dutch paint maker AkzoNobel under state management, following a decree signed by president Vladimir Putin on Monday.

The company told shareholders its three Russian subsidiaries have been put under “temporary external administration”. AkzoNobel said its ownership of the subsidiaries is unchanged and that it is studying the decree to assess the consequences.

The Amsterdam-based company, which owns brands including Dulux and Sikkens, said it remains committed to supporting its employees in Russia and protecting its interests as shareholder.

AkzoNobel wound down most of its Russian business after the 2022 invasion of Ukraine, halting production of coatings for ships, vehicles and aircraft in line with EU sanctions.

Foreign companies placed under Russian state management since the war began have so far not been returned to their owners. AkzoNobel rejected a takeover bid worth €12.5 billion from Nippon Paint and Sherwin-Williams earlier this year and is merging with US rival Axalta.