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Russia Seizes Control of Pennsylvania-Linked Manufacturer in Latest Foreign Asset Takeover
CANPACK, a global aluminum beverage can manufacturer with ties to Pennsylvania, has lost control of its Russian operations under a Kremlin decree, marking another chapter in Russia’s ongoing appropriation of foreign-owned assets since the Ukraine war began.
The company, owned by a Pennsylvania-based holding company, saw its Russian business—valued at approximately $700 million—placed under state “external administration” through a decree signed by President Vladimir Putin on December 31, 2025. The action effectively transferred control of all shares to state-appointed managers.
“I’m only a nominal shareholder,” CEO Peter Giorgi told Fox News Digital in an interview. “I lose all control of the company.”
The takeover became operational in mid-January when government administrators arrived at CANPACK’s facilities. According to company officials, they have had no direct access to or communication with their Russian operations since the seizure. Several senior executives, including the general manager and chief financial officer, were removed following the state intervention.
CANPACK has operated in Russia for nearly three decades and held between 35% and 40% of the country’s aluminum beverage can market, underscoring the significant scale of the seizure. The company continued operations in Russia after Moscow’s 2022 invasion of Ukraine while many Western firms exited.
“We decided to stay the course,” Giorgi explained, noting that the company faced challenges unwinding decades of investment and could not find a buyer willing to pay a fair price. They had hoped market conditions would eventually stabilize.
The seizure falls under a legal framework introduced in 2023 that allows the Russian government to place certain foreign-owned assets under temporary state control. The decree identified a company called Stalelement as the entity overseeing CANPACK’s assets, which company representatives describe as a shell entity with ties to the Russian government.
Alexander Kolyandr, a fellow at the Center for European Policy Analysis, noted that CANPACK’s situation is not unique: “Let’s not be U.S.-centric about that. CANPACK is not alone.” The same decree also targeted the Russian subsidiary of Danish insulation manufacturer Rockwool, while other Western companies including France’s Danone and brewer Carlsberg have faced similar actions in recent years.
“We are talking about dozens of companies,” Kolyandr added.
CANPACK executives reportedly face pressure from state-appointed administrators, including demands to approve financial decisions under threat of dismissal or other consequences. According to Russian business daily Vedomosti, CANPACK’s Russian division has donated approximately 500 million rubles to a pro-Kremlin fund supporting Russia’s war effort in Ukraine since the takeover.
The company believes roughly $18 million was directed to state-linked funds supporting Russian military operations, with an additional approximately $6 million sent to a Russian Orthodox church, based on Russian media reports and information from former executives.
The situation unfolds as Moscow signals interest in rebuilding economic ties with Washington. Putin’s envoy for foreign investment, Kirill Dmitriev, is reportedly in the United States meeting with officials in President Donald Trump’s administration to discuss a potential Ukraine peace deal and future economic cooperation.
Kolyandr observed that American companies have generally “fared much better than the European ones” in Russia, reflecting Moscow’s interest in preserving the possibility of improved ties with Washington. However, he noted that the trend of asset seizures accelerated significantly after Russia’s 2022 invasion of Ukraine when many Western companies began suspending operations or exiting the market.
“It all started in earnest with the beginning of the war,” he said, adding that the seizures reflect a wider redistribution of property aimed at bringing profitable or strategic assets under closer state influence. “It sends a signal across the system that if you do not toe the line, your property may be taken away.”
CANPACK has raised the issue with U.S. officials, but no formal action has been taken. The Russian Embassy in Washington and the Russian foreign ministry did not respond to requests for comment regarding the seizure.
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12 Comments
The seizure of this US-linked company by Russia is concerning. It appears to be part of a broader trend of the Kremlin taking over foreign-owned assets since the Ukraine invasion. This raises questions about the security of international investments in Russia going forward.
Agreed, it’s a worrying development that will likely further strain Russia’s ties with the West. The loss of control and uncertainty for the company’s Pennsylvania-based owners is troubling.
This seems like another escalation in the economic warfare between Russia and the West. The Kremlin is flexing its muscle by seizing control of a major manufacturer with US connections. It will be interesting to see how the Biden administration responds.
You raise a good point. The US may feel compelled to retaliate in some way, though it’s unclear what options they have that wouldn’t further inflame the situation.
This seems like a concerning development for international companies with operations in Russia. The Kremlin’s willingness to seize control of foreign-owned assets raises serious questions about the security of investments there. It’s a troubling escalation of economic tensions.
Absolutely. Any foreign company with ties to Russia has to be very nervous right now. This move by Putin further demonstrates his disregard for property rights and the rule of law when it comes to protecting Russian interests.
This seems like a concerning precedent that could embolden Russia to target other foreign-owned assets in the future. It will be important to monitor whether this leads to further escalation between Russia and the West, or if cooler heads can prevail and find a diplomatic solution.
I agree, this could be the start of a dangerous trend. Russia may feel emboldened to seize more foreign-owned companies and assets, further damaging its economic ties with the international community. Careful diplomacy will be critical to avoid an outright economic confrontation.
While the article focuses on the political and economic ramifications, I’m also curious about the human impact. What happened to the Russian employees of CANPACK? Were they retained under the new state-appointed management, or did the takeover lead to job losses and disruption for the local workforce?
That’s a good point. The human impact on CANPACK’s Russian employees is an important consideration that’s often overlooked in these geopolitical disputes. Their livelihoods have been thrown into uncertainty through no fault of their own.
I’m curious to learn more about CANPACK’s business and operations in Russia. Was this a strategic asset for the company, and how significant is the loss of this market? The financial impact on the Pennsylvania parent firm bears watching.
That’s a good question. The article mentions the Russian operations were valued at around $700 million, so it’s certainly a major piece of the CANPACK business. Losing that revenue stream will hurt, though the full financial implications remain to be seen.