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 released by the Kremlin.
The order, issued late Thursday, covers Nestle’s Russian operations, French retail group Auchan, 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 describe as “unfriendly countries” that have supported Ukraine and imposed sanctions on Moscow since Russia invaded Ukraine.
The takeover has raised questions over the ownership and future of the affected businesses.
Investigative outlet Novaya Gazeta Europe reported that LEV Management was established only in late 2025 and is headed by a Russian Interior Ministry general. The company has no publicly known business history.
Nestle assessing next steps
Nestle said it was assessing the situation and considering possible measures to protect its interests.
“The company is assessing the situation and its options,” the Swiss company said, adding that it remained committed to taking necessary steps to protect its rights and ensure continuity of its operations.
Analysts said the financial impact on Nestle could be limited because Russia now accounts for a small portion of its global sales.
Jean-Philippe Bertschy of Swiss investment bank Vontobel said Russia accounted for 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 supply essential food products.
Auchan seeks clarification
Auchan, one of Russia’s major retailers, said its Russian 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 a series of Russian seizures and forced transfers involving foreign companies that have sought to scale down or leave the Russian market since the war began.
In 2023, Russian authorities seized Danone’s Russian business before it was later sold to a company linked to the family of Chechen leader Ramzan Kadyrov.
The latest move adds to uncertainty for Western companies that still maintain operations or assets in Russia despite sanctions and efforts to withdraw from the market.
