A manufacturer with ties to Pennsylvania has lost control of its Russian operations due to a Kremlin directive, raising new concerns for Western firms as a Moscow court seeks to rekindle economic connections with the United States.
CANPACK, an international aluminum beverage can manufacturer owned by a Pennsylvania holding entity, disclosed that its Russian branch, valued at around $700 million, has been placed under “external control” by a decree from President Vladimir Putin on December 31, 2025. This effectively hands over complete control of the company’s stock to state-designated management.
The CEO, Peter Giorgi, stated that the company has completely lost its operational authority since administrators took over in mid-January. “I’m just a nominal shareholder,” he noted in an interview. “You lose all control over your company.”
The situation underlines the pitfalls surrounding Western businesses still active in Russia during the ongoing conflict, particularly as the Kremlin shows interest in restoring economic relations with the U.S. amidst possible peace discussions.
Reports indicate that Putin’s special envoy for foreign investment, Kirill Dmitriev, has been in talks with officials from President Donald Trump’s administration about a potential peace agreement regarding Ukraine and prospects for future economic collaboration.
Analysts suggest this shift is indicative of Russia’s evolving stance on foreign assets since the Ukraine war. “We shouldn’t only focus on the U.S. perspective,” pointed out Alexander Kolyandr, associated with the Center for European Policy Analysis. “This isn’t just about CANPACK.”
CANPACK has maintained a presence in Russia for nearly three decades and commands an estimated 35-40% of the country’s aluminum beverage can market, emphasizing the significance of this acquisition.
Since the transfer, the company has had no communication with its Russian operations, and many senior executives were terminated post-acquisition. Current Russian executives are reportedly facing pressure from state-appointed administrators, including demands to make financial decisions that could lead to job losses.
The conditions haven’t shifted in recent months. As of April, control and ownership of the Russian operations are still in external management.
This situation arises under a legal framework set to take effect in 2023, which grants the Russian government authority to temporarily take control of certain foreign assets. According to the decree, a company called Stalelement will oversee these assets and has been described by company representatives as a shell entity linked to the Russian government.
Officials from CANPACK have reached out to U.S. authorities regarding the matter, but no formal actions have been initiated yet.
Additionally, it was reported that CANPACK’s Russian division donated around 500 million rubles to a pro-Kremlin fund supporting the war efforts in Ukraine. The company believes that about $18 million was directed to a state-linked fund supporting their operations and around $6 million to the Russian Orthodox Church. These claims haven’t been independently verified.
Despite the modest sum in the grand scheme of the company’s value, it illustrates how swiftly financial management can change under external oversight.
Following the invasion of Ukraine in early 2022, CANPACK continued operating in Russia, unlike many Western enterprises that exited the market. Giorgi noted that while they contemplated leaving, unwinding decades of investments proved difficult and finding a suitable buyer was a challenge.
“We opted to continue with our policy,” he stated, expressing hopes for eventual stabilization in the situation.
The same decree from December 2025 also affected the Russian branch of Danish insulation firm Rockwool, while other Western companies, such as France’s Danone and beer producer Carlsberg, have encountered similar actions by Russian officials.
“Dozens of companies are involved,” Kolyandr mentioned.
He further noted that U.S.-related companies tend to be managed more cautiously compared to European ones. “American companies have performed significantly better than their European counterparts,” he said, pointing to Russia’s interest in potentially improving ties with the U.S.
The dynamics shifted markedly after Russia’s invasion of Ukraine, with Western companies increasingly withdrawing from the market. “Everything escalated when the war began,” he observed, adding that asset management for the authorities has become simpler since then.
Kolyandr explained that this policy mirrors a larger trend of reallocating assets to bring profitable and strategic holdings closer under state influence, suggesting that it sends a clear message: not conforming may result in asset seizure.
While this may yield some revenue for the state, it’s not believed to be the primary objective. “On one hand, it somewhat enhances budgetary cash flow,” he conveyed. “But I don’t think that’s the primary motivator.”
Requests for comments from the Russian Embassy in Washington and the Russian Foreign Ministry went unanswered.
