Kremlin Takes Control of Belgian Hygiene Product Maker Ontex

2026-10-16 global

Moscow, Friday, 16 October 2026.
A new Kremlin decree has placed Ontex Russia under state management, transferring operational control of the Belgian diaper maker’s local assets amid escalating retaliation against European businesses.

State Management Decree Issued

The Russian government has placed the local subsidiary of Belgian personal hygiene manufacturer Ontex under temporary state management through a presidential decree issued on October 15, 2026 [1][2]. Under the terms of the decree, Moscow appointed an interim administrator who effectively took operational control over Ontex Russia, signaling continued geopolitical risks for Western companies maintaining a physical footprint within the Russian market [3][4]. Ontex announced the development in a press release on Friday, October 16, 2026, confirming it was informed of the decree the previous day [1][2]. The company stated it is assessing the situation and will take appropriate measures to protect its assets and ensure the continuity of operations in the interests of employees and stakeholders [2][3].

Financial Stakes and Operational Footprint

Ontex Russia currently employs around 350 people and operates a production facility in Noginsk, east of Moscow, along with a sales office in the Russian capital [1][2]. The subsidiary accounts for approximately 5 per cent of Ontex Group’s total revenue and 7 to 8 per cent of its adjusted EBITDA under IFRS consolidation rules [2][3]. Following the announcement, shares noted on the Brussels stock exchange were suspended pending publication of the press release, according to financial regulator FSMA [1]. Trading resumed at 11 am, and by around 11.15 am, the shares were down by more than 0.6 per cent, having been up by almost 3 per cent before the suspension [1].

Part of a Wider Economic Strategy

The seizure of Ontex’s assets is part of a broader decree signed by President Vladimir Putin that also placed the Russian assets of French flooring manufacturer Tarkett under temporary management [4][5]. The decree additionally targeted assets of three foreign packaging companies: German Georg Menshen GmbH & Co. KG, Dutch Sonoco Packaging Netherlands Investments B.V., and Swedish Sverige International Holdings AB [4][7]. These measures utilize a mechanism established by Decree No. 302 on April 25, 2023, which cites retaliatory measures against the confiscation of Russian property by the US and allied nations [6][7]. The affected companies collectively generate over RUB 50 billion, approximately US$596 million, in annual revenue [6].

Implications for Western Business

The Kremlin has indicated that such measures to take control over foreign firms are a response to EU nations’ involvement in direct battlefield hostilities, though officials stress they are reversible [7][8]. This latest move against European companies came ahead of Ukrainian President Volodymyr Zelenskiy’s appearance at an EU summit on Friday, October 16, 2026 [7][8]. Russian officials have signaled potential future asset seizures targeting the Russian subsidiaries of UniCredit and Raiffeisen banks, continuing a campaign that previously targeted energy groups and consumer brands [6][7]. The ongoing expropriation hazards highlight the precarious position of Western companies maintaining operations within the Russian jurisdiction [5][6].

Sources

Corporate Risk Asset Seizure