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    Temporary Forced Administration Imposed on Companies Linked to Russians in Poland

    Estimated reading time: 2 minutes

    In a groundbreaking move, Poland has become the first European country to implement a temporary forced administration in companies with Russian connections. The recent decision by Minister of Development and Technology, Waldemar Buda, targets Boerner Insulation sp. z o.o. and Boerner Service sp. z o.o., both of which were placed on the sanctions list by the Minister of Internal Affairs and Administration.

    Boerner Insulation sp. z o.o. is a manufacturer of construction insulation materials, primarily mineral wool, employing approximately 200 people. Meanwhile, Boerner Service sp. z o.o. focuses on selling construction insulation materials and has around 50 employees in its Warsaw-based firm.

    Minister Buda emphasized that Poland continues to take steps to block Russian influence and capital. By introducing temporary forced administration, the government ensures the uninterrupted operation of these construction-related companies, securing jobs and maintaining conditions for business activities.

    Temporary forced administration can be implemented by the Minister of Development and Technology in companies listed on the sanctions list when necessary to ensure their functioning and the provision of services to the public. Additionally, this measure can be employed to safeguard the economic interests of the state.

    The application of temporary forced administration is not new in Poland. On October 11, 2022, it was introduced in Novatek, followed by PAO Gazprom on November 4, 2022. Furthermore, on July 11, 2023, Minister Buda imposed temporary forced administration on three companies belonging to Vyacheslav Kantor, a Russian oligarch with significant control over 19.82% of shares in Grupa Azoty SA through various entities registered in Luxembourg and Cyprus.

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