Vladimir Putin has dismissed Western sanctions against Russia as “stupidity”, in an apparent acknowledgement of the pressure on Moscow’s economy as the Kremlin continues to tighten its grip on foreign-owned assets.
The Russian president’s remarks, reported by the Russian Embassy in the US, came in an interview with Pavel Zarubin, a pro-Kremlin journalist. Putin claimed that Russia remained committed to creating favourable conditions for European companies willing to continue operating in the country despite the war against Ukraine.
He asserted that Moscow had “many friends in Europe”, but said some businesses had been forced to abandon the Russian market under pressure from Western European governments.
According to Putin, people associated with some departing companies had been close to tears over their withdrawal. He said Russia was seeking to create favourable conditions for foreign businesses that had remained.
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Yet his criticism of sanctions came against a backdrop of growing uncertainty over the security of foreign companies’ investments in Russia, where authorities have increasingly used temporary management arrangements to take control of assets linked to countries the Kremlin describes as “unfriendly”.
“Banning everything from Russia is stupidity,” Putin said, portraying Western restrictions as misguided while defending Moscow’s approach to international business.
The distinction between the Kremlin’s stated welcome for foreign investors and its treatment of companies with Western ties has become increasingly pronounced.
In September, a decree issued by Putin placed Russian assets associated with several international businesses under temporary management. The companies named included Swiss food group Nestlé, US packaging manufacturer Aptar, German retailer Metro, French supermarket chain Auchan, logistics group FM Logistic and Lemana Pro, formerly known in Russia as Leroy Merlin.
The Kremlin justified the measures by citing the companies’ connections to countries it considers hostile. Russian officials accused those states of involvement in military actions against Russia, including attacks on economic infrastructure.
In mid-October, the Russian assets of French flooring manufacturer Tarkett were also reportedly placed under temporary management.
The measures underline the risks facing foreign businesses operating in Russia, where political decisions linked to the war have complicated investment, ownership and exit strategies. Temporary management can leave companies with diminished control over assets even as Moscow insists that it wants to preserve commercial relationships with selected foreign partners.
Putin’s comments also arrive amid renewed Russian statements about the possibility of resuming peace negotiations with Kyiv. The Kremlin has recently indicated a willingness to return to talks, although the remarks do not in themselves establish that a settlement is imminent.
For Western governments and businesses, the competing messages present a difficult calculation: Moscow says it wants international companies to stay, while its actions towards foreign-owned assets have raised fresh questions about the reliability of those assurances.
Putin’s dismissal of sanctions as “stupidity” may be intended to portray Western economic pressure as self-defeating. But the continuing use of temporary management measures highlights the uncertainty that remains for foreign investors navigating Russia’s wartime economy.
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