In a move that is likely to increase tension between Russia and Western Europe, the Kremlin has unexpectedly announced the "temporary external management" of Russian subsidiaries of Italian water heating company Ariston and German appliance maker BSH Hausgeraete.
The subsidiaries, Ariston Thermo Rus, and BSH Household Appliances, now come under the management of Gazprom's Household Systems and are now completely under Russia's control.
The Executive Order, signed by President Vladimir Putin, which was revealed on Friday and backdated to Tuesday, states the measures are "an urgent response to the United States and other countries and international organisations whose actions, unfriendly and contrary to international law, illegally deny the Russian Federation, Russian legal entities and individuals property rights and/or restrict their ownership titles".
In Italy, household appliance maker Ariston said it had no prior knowledge that its subsidiary was going to be taken over.
Italy's Foreign Minister Antonio Tajani has called on the Kremlin for an explanation: "The government requests clarification on the matter of the nationalisation of the Ariston Thermo Group," he said on X.
Questioning the legal basis, the Italian foreign ministry called on Russia to reverse its decision, as did the European Union, saying: "These measures, targeting legitimate economic activities, are yet further proof of Russia's disregard for international law and rules."
Since the war in Ukraine began, Russia has taken a number of western assets, including those of Germany's Uniper and Austria's OMV, under "temporary management", as retaliation for actions by "unfriendly countries".
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