News Markets & Companies
Akzo Nobel’s Russian subsidiaries placed under external administration
A presidential decree in Russia has placed Akzo Nobel’s subsidiaries in the country under temporary external administration. While the company assesses the implications, Russia accounts for less than 2 % of its global revenue.
Akzo Nobel’s Russian subsidiaries have been placed under temporary external administration following a decree signed by the Russian president. The company announced that while this measure transfers operational oversight to an external entity, the underlying ownership of the subsidiaries remains unchanged.
Russia represents less than 2 % of Akzo Nobel’s global revenue, making the region relatively immaterial to the company’s overall financial performance. Nevertheless, Akzo Nobel stated that it is reviewing the decree and its implications. The company emphasised its commitment to supporting its employees and safeguarding its interests as the shareholder of its Russian subsidiaries.
Operations in Russia following EU sanctions
After the EU sanctions introduced in 2022, Akzo Nobel significantly scaled back its operations in Russia. The remaining activities have since been fully localised and ringfenced, operating independently without financial support from the company’s global headquarters in the Netherlands.
Akzo Nobel’s approach reflects ongoing challenges faced by multinational corporations navigating geopolitical and regulatory shifts. The temporary external administration underscores the complex environment for businesses operating in Russia amid international sanctions and local governance changes.
