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Russian authorities have taken control of the Russian operations of Swiss food giant Nestle and three French companies, including Auchan and Lemana Pro, in the latest move against Western businesses linked to countries supporting Ukraine.
A decree signed by President Vladimir Putin transferred the companies’ Russian subsidiaries to a firm called LEV Management, according to documents the Kremlin released.
The order, issued late Thursday, covers Nestle’s Russian operations, French retail group Auchan, the former Leroy Merlin DIY chain now operating as Lemana Pro, and the Russian subsidiaries of logistics company FM Logistic.
Russian authorities have defended the move as a response to what they described as “unfriendly countries” that have supported Ukraine and imposed sanctions on Moscow since its invasion of the country.
The transfer has raised questions over the ownership and future of the affected businesses. Investigative outlet Novaya Gazeta Europe reported that LEV Management was established only at the end of 2025 and is led by a Russian interior ministry general, with no publicly known business history.
The move follows a series of asset seizures and forced transfers involving foreign companies that have attempted to reduce or end their Russian operations after the war began.
Nestle said it was assessing the situation and possible steps to protect its interests.
“The company is assessing the situation and its options,” the Swiss food company said, adding that it remained “committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees.”
Analysts said the financial impact on Nestle could be limited because Russia now accounts for a small share of the company’s global sales. Jean-Philippe Bertschy of Swiss investment bank Vontobel said Russia represented just over one per cent of Nestle’s sales, down from about two per cent before the war.
Nestle has already suspended most sales, non-essential imports, advertising and capital investment in Russia, while continuing to provide essential food products.
Auchan, one of Russia’s major retailers, said its local subsidiary had asked authorities for clarification on the decree. The company operates 241 stores in Russia, including 62 hypermarkets, and employs more than 33,000 people, according to information on its website.
The latest takeover follows previous Russian actions against foreign companies, including the 2023 seizure of Danone’s Russian business, which was later sold to a company linked to the family of Chechen leader Ramzan Kadyrov.
