Russia has placed AkzoNobel’s subsidiaries in the country under temporary external administration, effectively seizing control of the day-to-day operations of those businesses.

AkzoNobel officials say a presidential decree signed by Vladimir Putin turned the company’s businesses over to a government-approved outside manager. While AkzoNobel still owns the subsidiaries, it is unable to manage them.

“Under temporary external administration, operational oversight is transferred to a designated external entity, while underlying ownership remains unchanged,” explain officials. “AkzoNobel is currently reviewing the decree and assessing its implications. Russia represents less than 2% of AkzoNobel’s revenue and is not material to the company’s overall financial performance.”

After Russia invaded Ukraine in 2022, AkzoNobel pulled back on its operations in the country. Officials say the operations that remained have since “been fully localized and ringfenced, operating independently without financial support from AkzoNobel N.V.”

According to Reuters, Russia has confiscated assets worth roughly $50 billion dating back to 2022. More than 560 international companies have left Russia since the war’s start, with more than 775 suspending operations, per the KSE Institute.