Russian authorities have placed AkzoNobel’s local subsidiaries under external administration.
A July 13 presidential decree transferred operational control of the subsidiaries to a designated external administrator.
According to AkzoNobel’s July 13 release, ownership has not changed.
“Under temporary external administration, operational oversight is transferred to a designated external entity, while underlying ownership remains unchanged,” the release states.
The release states that AkzoNobel is 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,” the release states.
The Russian operations had already been separated from AkzoNobel’s broader business. Following European Union sanctions introduced in 2022, AkzoNobel discontinued a significant part of its Russian activities.
AkzoNobel’s earlier Russia statement said the company had stopped Russian activities in marine, protective and yacht coatings, vehicle refinishes, automotive coatings and aerospace coatings. The company also previously revealed parts of its industrial coatings and powder coatings businesses had been stopped in Russia.
Russian coatings-sector reports have identified the affected AkzoNobel entities as AkzoNobel Decor, AkzoNobel Coatings and AkzoNobel Lakokraska.
AkzoNobel’s refinish brands outside Russia include Sikkens, Lesonal and Wanda. The company remains a major supplier to the collision repair sector while shareholders prepare to vote August 5 on its proposed merger with Axalta Coating Systems.
