EU criticises Russia over control of German, Italian firms’ units

(Reuters) -The European Union criticised Russia on Saturday for putting subsidiaries of one Italian and one German business under the “short-term external management” of a Gazprom (MCX:-RRB- entity, stating the relocation highlighted Moscow’s neglect for global standards.

Russian President Vladimir Putin put the Russian subsidiaries of Italian water heating business Ariston and German home appliance maker BSH Hausgeraete under JSC Gazprom Household Systems, according to a decree released on Friday.

“These procedures, targeting genuine financial activities, are yet another evidence of Russia’s neglect for global law and guidelines,” a representative for the EU’s diplomatic service stated in a declaration.

It stated the relocations validated that Russia, which is waging war on Ukraine, was “an unforeseeable star likewise in the financial field, and has actually produced a company environment which is approximate and hostile towards foreign financiers”.

“The European Union gets in touch with Russia to reverse these procedures and look for appropriate services with European business targeted by them,” the declaration stated.

Ariston stated on Saturday it was “very stunned” by the relocation and was evaluating the ramifications of the decree from a governance and supervisory perspective.