Foreign businesses seized by Russia finance equipment purchases for Russian military

Foreign companies whose Russian subsidiaries have been placed under temporary Kremlin control are helping finance Russia’s military needs. According to Bloomberg, the businesses are making donations to the People’s Front, an organization established at Vladimir Putin’s initiative that purchases equipment for Russian troops.

After the start of the full-scale war, the organization launched the Everything for Victory! project. Corporate donations are used to purchase drones, vehicles, communications equipment and electronic warfare systems. Although these contributions are small compared with state spending on the war, they give company managers an opportunity to demonstrate their support for the Kremlin.

For example, the Russian subsidiary of Danish insulation manufacturer Rockwool transferred 600 mln roubles to the People’s Front after being placed under the management of a local company. The funds were intended to purchase all-terrain vehicles, communications equipment, reconnaissance drones and electronic warfare systems. Later, the Russian operations of Dutch paint manufacturer Akzo Nobel and Italian electrical equipment company DKC, also placed under the same management, jointly donated another 3 bln roubles.

Other examples include brewer AB InBev Efes, which reported donating 1 bln roubles in 2026, and the Russian subsidiary of German retail chain Metro, which pledged to transfer the same amount last month. Meanwhile, Baltika, previously controlled by Denmark’s Carlsberg, is now producing a non-alcoholic vitamin-enriched caffeinated drink called For Our SVO Troops for Russian military personnel.

The temporary management mechanism allows Russian authorities to take operational control of businesses from countries designated as “unfriendly”, while formal ownership remains with their foreign parent companies. Since September, the Kremlin has stepped up such measures, including taking control of the Russian operations of Nestlé and Japan Tobacco. Russia’s state spending on the war is forecast to exceed 17 trillion roubles ($206 bln) this year.

Tags: Russia, war