Russian government takes ‘temporary’ control of Canpack operations

RUSSIA – The Russian government has placed the local operations of metal can manufacturer Canpack under temporary external administration, seizing control of the company’s assets in the country by presidential decree.

Canpack, which is headquartered in Wayne, Pennsylvania, with corporate offices in Krakow, Poland, said the move was unexpected and that it is currently evaluating its implications.

In a statement, Canpack said it does not understand the basis for the government’s action, noting that it has operated in Russia for more than 30 years in compliance with all applicable regulations.

The company added that its Russian operations employ more than 500 people and play a significant role in the local packaging value chain.

“Canpack is assessing the legal, operational and financial consequences of the government’s action, and intends to take all appropriate measures that may be available in order to protect its rights, ownership of its assets, continuity of its operations, and the welfare of its employees,” the company said.

According to Russian state news agency Tass, state-owned firm Stalelement has temporarily assumed 100% control of Canpack’s Russian assets, effective 31 December 2025, although the relevant decrees were only published recently.

The same decree reportedly also placed assets belonging to Denmark-based insulation producer Rockwool under temporary state control.

The move comes amid a broader pattern of state intervention affecting foreign-owned businesses still operating in Russia following the country’s invasion of Ukraine in 2022.

Since the start of the war, a wave of multinational companies have exited or curtailed operations in the Russian market, including major packaging players such as Amcor, Ball Corporation, and International Paper.

Others have taken more gradual approaches. In its 2023 annual report, packaging manufacturer Silgan said it was in the process of shutting down two metal container plants in Russia, although it stopped short of announcing a full divestment.

In July 2024, Russian authorities ordered the temporary takeover of two Silgan facilities, highlighting the growing risks faced by foreign industrial operators that maintained a presence in the country.

Data from the Yale School of Management, published in January 2024, showed that Canpack had paused new investments in Russia but continued substantive business activities there.

European media reports estimate that the company controls roughly 30% of Russia’s aluminium beverage can market. Canpack lists three production sites in the Moscow and Rostov regions, serving domestic beverage producers.

Canpack declined to provide additional comment beyond its initial statement. For the global packaging industry, the development underscores the increasingly complex geopolitical and regulatory environment facing manufacturers with legacy assets in Russia, particularly in capital-intensive sectors such as metal packaging, where exits are difficult and local market share remains significant.

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