Putin Seizes Nestlé, Auchan, and Leroy Merlin Assets Under Temporary Russian Administration
Russian President Vladimir Putin signed a decree placing the Russian assets of Swiss food giant Nestlé, French retailer Auchan, and hardware chain Leroy Merlin under temporary external management. Shares were transferred to Russian firm L.E.V. Management. Nestlé, which operates six factories and employs about 7,000 people in Russia, said it is assessing options to protect its rights. Analysts estimate Russia now contributes just over 1% of Nestlé’s group sales, suggesting limited financial impact.
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Cross-source coverage
Common ground
- Both sides agree that Russia's 'temporary administration' of Western assets is a deliberate escalation in the broader geopolitical conflict.
- All participants recognize that property rights are now being used as a weapon by both Russia and the West.
- There is agreement that the Russian middle class and consumers will bear the real costs through inflation, lower-quality goods, and supply chain disruptions.
- All sides acknowledge that the Danone and Carlsberg cases set a precedent that 'temporary' management often becomes permanent.
Points of contention
- The West argues Russia's actions are theft and a violation of international law, while Russia claims it's a legitimate sovereign response to Western sanctions.
- There is no agreement on who started the escalation: the West points to Russia's invasion of Ukraine, while Russia points to decades of Western asset freezes and sanctions.
- The West sees its own asset freezes as transparent and reversible, while Russia and the Neutral Agent view them as equally arbitrary and politically motivated.
- Russia frames its actions as building long-term economic sovereignty, while the West calls it a short-sighted protection racket that harms Russia's own economy.
Blind spots
- All sides overlook the operational reality that Russian consumers and workers will suffer most from supply chain breakdowns and quality drops.
- The debate ignores the long-term damage to the principle of depoliticized commerce, which affects all multinationals globally.
- No one fully addresses the asymmetry in scale: the West froze $300 billion in Russian reserves, while Russia seized about $5 billion in corporate assets.
- The discussion fails to consider how Russia's growing dependence on China undermines its claim of building genuine multipolar sovereignty.
WorldAttention’s read
This debate reveals that Russia's seizure of Nestlé's assets is not a simple case of theft or sovereignty—it's a calculated move in a game both sides have been playing for decades. The West froze Russian reserves after the invasion of Ukraine, but the U.S. and EU have a long history of weaponizing financial systems against other nations. Russia is now mirroring those tactics, but on a smaller scale and with less transparency. The real victims are ordinary Russians, who face higher prices, lower-quality goods, and broken supply chains, while both sides claim moral high ground. The deeper cost is the death of the idea that international business can survive political storms—a loss for everyone except those who profit from conflict.
Reporting timeline
Nestlé Shares Fall 2% After Russia Seizes Control of Local Business via Presidential Decree
Nestlé shares dropped approximately 2% after a presidential decree by Vladimir Putin placed Nestlé Russia under temporary external administration, effectively stripping the Swiss company of day-to-day control over its local operations. Nestlé operates six factories in Russia, employs around 7,000 people, and generated roughly CHF2 billion ($2.5 billion) in sales in 2021, though analysts now estimate Russia contributes closer to 1% of group sales. The company is assessing its options and promising to protect its rights and maintain business continuity. Moscow has increasingly used temporary administration powers against foreign companies from countries it considers unfriendly, with previous interventions involving Danone and Carlsberg leading to permanent loss of control. The immediate financial hit is likely manageable given Russia's small contribution to Nestlé's global sales, but investors are concerned that temporary administration could lead to a forced sale or outright expropriation, similar to precedents set by other Western firms since 2022.
Read sourceNestle weighs all options after Kremlin moves to seize its Russia business
Nestle announced on Friday that it is evaluating all options to protect its rights after the Kremlin decided to place its Russian operations under temporary administration, as announced in a presidential decree on Thursday. The Swiss food maker, known for Nescafe and KitKat, stated it is committed to taking necessary steps to protect its rights and ensure business continuity for stakeholders, especially its employees. Nestle shares fell 2.4% following the news. Russia has tightened control over foreign assets since the Ukraine war began in 2022, using a 2023 decree to place assets from 'unfriendly' countries under temporary administration, often leading to state expropriation. French supermarket Auchan was also targeted. Kremlin spokesman Dmitry Peskov cited political factors, alleging Switzerland and France are involved in military actions against Russia. Nestle has six factories in Russia, generating about 2 billion Swiss francs in sales in 2021, though analysts estimate the contribution has since dropped to around 1% of group sales. Bank Vontobel analyst Jean-Philippe Bertschy noted a marginal financial impact given Russia's limited contribution.
Read sourceKremlin seizes Nestlé's Russian assets in new crackdown on foreign firms
Vladimir Putin ordered the seizure of Nestlé's Russian business via a presidential decree, transferring the Swiss company's assets to a firm called LEV Management. Nestlé, which has six factories in Russia and about 7,000 employees, said it is assessing its options and committed to protecting its rights. The decree also covers the Russian subsidiaries of French supermarket group Auchan, logistics firm FM Logistic, and the former Leroy Merlin DIY chain. Nestlé shares fell 1.7% following the announcement. Analysts offered mixed views: Warren Ackerman of Barclays said the risk of Nestlé losing the business looks materially higher, while Jean-Philippe Bertschy of Vontobel expected a small financial impact given Russia's limited contribution to group sales (just over 1%). Jon Cox of Kepler Cheuvreux noted that similar experiences with Danone and Carlsberg did not bode well for Nestlé, suggesting the assets may be lost for the foreseeable future with unlikely compensation.
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Putin Places Nestlé, Auchan, and Leroy Merlin Under Russian Compulsory Administration
Russian President Vladimir Putin has signed a decree placing the Russian operations of Swiss food giant Nestlé, French retail chain Auchan, and hardware store chain Leroy Merlin (renamed Lemana Pro in Russia) under Russian compulsory administration. The shares have been transferred to a Russian company named L.E.V. Management, which, according to independent Russian newspaper Novaya Gazeta Europe, is led by Andrei Krayushkin under the jurisdiction of the Russian Ministry of Internal Affairs. The newspaper reported that L.E.V. Management had conducted no business activity at least until the end of 2025 and employed only a single employee, with unknown owners. Analyst Jean-Philippe Bertschy from Vontobel Bank estimates that Nestlé now generates slightly more than one percent of its revenue in Russia, down from two percent in 2021, indicating minimal financial impact. Nestlé stated it would take all necessary measures to protect its rights and ensure business continuity. The decree also covers assets of Nestlé Deutschland AG in Russia. This move follows a pattern where state expropriation in Russia is often preceded by temporary compulsory administration, with assets later transferred to Kremlin-connected entities.
Read sourcePutin Orders Transfer of Nestlé and Auchan Assets in Russia to Temporary Management
Russian President Vladimir Putin has ordered the transfer of shares held by Swiss company Nestlé in its local Russian businesses to temporary administration, according to a presidential decree published on Thursday on Russia’s official legal information portal. The decree also orders the transfer of assets belonging to French retailer Auchan in Russia to temporary administration. Since 2023, Russia has used this temporary management mechanism to take control of assets belonging to companies from countries it deems “unfriendly.” Previously, Russian authorities had placed the assets of foreign companies such as Danone and Carlsberg under temporary administration, with some of these assets subsequently being transferred to Russian buyers.
Read sourcePutin Orders Temporary Management of Nestlé's Russian Assets
Russian President Vladimir Putin has issued an order placing the Russian assets of Swiss food and beverage giant Nestlé under temporary external management. The decree, reported by financial data platform Jin10, marks the latest move by Moscow to assert control over foreign-owned businesses in Russia amid ongoing geopolitical tensions. Nestlé, one of the world's largest food companies, has had a significant presence in Russia for decades. The temporary management order allows Russian authorities to appoint administrators to oversee the company's local operations, effectively transferring operational control from the Swiss parent company. The specific terms of the decree and its immediate impact on Nestlé's Russian workforce, supply chains, and product availability have not been detailed. This action follows a pattern of similar measures taken by the Kremlin against other Western companies since the start of the conflict in Ukraine, as Russia seeks to manage foreign assets and respond to international sanctions.