Vladimir Putin signs decree to take over French large industrial group's assets in Russia

Russian President Vladimir Putin signed a decree on August 29 to place the Russian assets of the French major industrial company, the world-leading industrial gas supplier "Air Liquide", under the management of a Russian local company. Reuters pointed out that this decree is one of Russia's responses to so-called "unfriendly" measures from the United States and other Western countries.

According to the decree, the Russian assets of the French "Air Liquide" group will be transferred to a Russian domestic company named M-Logistika.

This transfer involves the joint venture between the French "Air Liquide" group and the Russian steel company Severstal, as well as other businesses of the group in Russia.

The French "Air Liquide" group stated in a statement that it has been aware of the Russian government's decision and will "study all feasible countermeasures".

The French "Air Liquide" group noted that by the end of 2022, the company had "reserved" a special provision of 586 million euros for the impairment of all assets, which does not affect cash flow. After that, the group no longer has any remaining financial risk exposure in Russia.

Reuters reported that the "Air Liquide" group exited Russia in 2022. At that time, the group signed an agreement to transfer its assets in Russia to a local manager. The group at the time said that it employed about 720 employees in Russia, and the local business accounted for less than 1% of its turnover.

Although the "Air Liquide" group had planned to transfer its Russian assets to a local manager through an agreement, due to being in the commercial and civil field, the risks and constraints were completely different from the current mandatory and irresistible intervention by Putin through national decree. This serves as a strong signal for other foreign companies that have not yet exited or still have exposed assets.

Original: www.toutiao.com/article/1841813096227975/

Statement: The article represents the personal views of the author.