Putin’s government takes control of all Canpack subsidiaries in Russia

Russia has taken control of the local operations of the Polish-American company Canpack Group, Inc., one of the world’s largest producers of aluminum packaging, according to the Russian agency TASS.

The change was carried out through a decree by President Vladimir Putin, which granted the Russian company Stalelement “temporary external management” of Canpack’s subsidiaries in Russia. This company has assumed full management of the shares of Can-Pack LLC and its packaging plants in Volokolamsk (Moscow region) and Novocherkassk (Rostov region).

Canpack, which controls approximately 30% of the Russian aluminum beverage packaging market, confirmed it has been notified of the decree and is evaluating the legal, operational, and financial implications of the measure to protect its rights and business continuity. (Source: TASS / Onet).

Russian authorities have not provided official explanations for this measure. However, similar decisions are being increasingly applied to companies from countries that Moscow considers “unfriendly,” in what is interpreted as a response to sanctions imposed due to the war in Ukraine.

Founded in 1992 in Krakow, Canpack operates production plants in Asia, the Middle East, North and South America, and various parts of Europe, as part of Giorgi Global Holdings.

Meanwhile, Rockwool‘s assets came under the control of JSC Razvitie Stroitelnykh Aktiv, which now fully manages Rockwool LLC and owns 68% of Rockwool-Volga LLC.

Simultaneously, Russia took control of the local assets of the Danish firm Rockwool, the world’s largest producer of mineral wool insulation. The move caused an 8% drop in Rockwool’s shares, and the company announced it will challenge the decision, although it admitted to being “hardly optimistic” about reversing it.

The Polish media outlet RMF FM indicates that these actions increasingly target companies from countries considered “unfriendly” by Russia, such as Poland, one of Ukraine’s staunchest supporters.

The news generated critical reactions in Poland; Krzysztof Lisek, a former MP for the governing Civic Coalition party, questioned Canpack’s continued presence in Russia and noted that “the desire for profit clouded reason.”

Additionally, Canpack is included in the Yale University list of Western companies that have continued to operate in Russia following the full-scale invasion of Ukraine. Another Polish company on that list is the textile group LPP, owner of brands such as Sinsay, Reserved, and Cropp, which last year agreed to pay 1.8 million zloty (€420,000) to settle an investigation into alleged disclosure failures during the sale of its Russian business.