Russia · updated 1h ago · 3 min read
Putin Places Nestlé, Auchan, Lemana Pro Under Temporary Administration
Putin signed a decree transferring Nestlé Russia operations and assets to LEV Management under administration. Auchan and Leroy Merlin Russia assets placed under administration, with LEV Management overseeing operations temporarily.
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2 of 3 outlets skipped it: temporary administration covers specific Nestlé stakes and percentages..
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Putin decree seizes operations
Russian authorities moved to seize the remaining assets and operations of Swiss food giant Nestlé and three French groups by placing their Russian businesses under temporary administration, with a decree signed by President Vladimir Putin late Thursday transferring the Russian operations of Nestlé, French retailer Auchan and the former Leroy Merlin DIY chain, now known as Lemana Pro, to a company called LEV Management.
“A decree signed by President Vladimir Putin late Thursday transferred the Russian operations of Nestle”
The decree also covers the Russian subsidiaries of French logistics group FM Logistic, as Kremlin spokesman Dmitry Peskov said the measure targets companies from countries considered hostile and that it is temporary, with no further decisions taken about those assets.
Nestlé said it has been operating in the Russian market since 1994 and stated that it is "taking all necessary steps to protect its rights and ensure the continuity of business operations in the interests of all stakeholders, especially its employees."
Reuters reported that the decision could pave the way for the assets to be seized, describing it as Russia’s latest effort to tighten control over foreign-owned companies since the start of the Ukraine war in 2022.
In the same reporting, Reuters said Nestlé runs six factories in Russia making products including coffee, pet food and infant formula, and that it employs about 7,000 people in the country.
Peskov cites hostile countries
Kremlin spokesman Dmitry Peskov defended the move on Friday as a justified measure against firms representing "unfriendly countries" that back Ukraine, while also saying the decision was based on factors including that the assets belong to countries considered hostile.
Euronews reported that Putin signed a decree on Thursday placing the management of stakes and shares in 16 Russian companies under the control of L.E.V. Management, and it said the move tightens Moscow’s control over Western-owned assets amid its confrontation with Western countries over sanctions imposed following Russia’s invasion of Ukraine.
Euronews also said the measure does not formally confiscate the businesses or change their ownership, according to Russian lawyers cited by Kommersant, but it added that temporary administration has previously preceded the sale or transfer of Western-owned assets to Russian buyers.
Reuters said it remains unclear why Nestlé was targeted, noting that Peskov said both companies were based in "unfriendly" countries without naming Switzerland or France.
Reuters further reported that the decree names L.E.V. Management as temporary administrator of the assets and that the Moscow-based company was registered in 2024 with a limited public profile.
Impact, jobs, and next steps
Nestlé said it was assessing the situation and its options after Russia placed its local businesses under temporary administration, while Reuters reported that the company declined to comment further on what action it was considering.
“could pave the way for the assets to be seized”
Reuters said Russia created the mechanism in 2023 through a presidential decree allowing the state to place assets owned by companies from countries deemed "unfriendly" under temporary administration, and it described how ownership is not formally transferred at this stage even as the state-appointed manager assumes control of the assets.
Reuters also reported that according to a 2025 estimate by Moscow law firm NSP, the Russian state has seized more than $50 billion worth of private property, including assets owned by foreign companies.
On the financial side, Reuters cited an estimate by Vontobel analyst Jean-Philippe Bertschy that the financial impact to Nestlé would be small given Russia’s limited contribution to group sales, and it said Russia accounted for just over one per cent of the group’s sales, down from around two per cent before the Ukraine war.
The same Reuters reporting said Nestlé has suspended many brands and halted non-essential imports, exports, advertising and capital investment in Russia while continuing some essential food operations, leaving the immediate stakes tied to continuity of business operations and the risk that temporary administration could lead to forced exit.