Nestle, Auchan Russia assets seized by Putin decree

Russia has seized the businesses and assets of Nestle and three French groups, transferring their Russian operations to LEV Management under a decree signed by President Vladimir Putin.

The decree, issued late Thursday, covers Swiss food group Nestle, French retailer Auchan, the former Leroy Merlin DIY chain now known as Lemana Pro, and the Russian subsidiaries of French logistics group FM Logistic.

The Kremlin defended the move Friday as justified against companies from countries it called unfriendly and supportive of Ukraine. France's foreign and economy ministries condemned the decision late Friday and called on Russian authorities to reverse it.

Investigative outlet Novaya Gazeta Europe reported that LEV Management was created only at the end of 2025, is headed by a Russian interior ministry general and had no known business activity.

Nestle said it was assessing the situation and its options. The company said it would take all necessary steps to protect its rights and maintain business operations, particularly for employees. A Nestle spokesperson said the company has six factories in Russia and employs about 7,000 people there, mainly in coffee, pet care, infant nutrition and confectionery.

Jean-Philippe Bertschy of Swiss investment bank Vontobel said Russia now accounts for just over 1 percent of Nestle's sales, down from about 2 percent before the Ukraine war. Nestle shares dropped 2.6 percent on the Zurich stock exchange on Friday.

Jefferies analysts said similar transfers had often preceded a forced sale or effective expropriation. They estimated that writing off Nestle's Russian business, including money it had not been able to repatriate, could cost the company around one billion francs, or $1.2 billion.

Auchan's Russian subsidiary said it had requested clarifications from authorities over Putin's decree. Auchan is one of Russia's main retailers, with 241 stores in the country, including 62 hypermarkets, and more than 33,000 employees, according to its website.

Russia has made it harder for Western companies to leave after sanctions over its war against Ukraine, including requiring presidential approval for deals or seizing assets. The latest seizure follows Moscow's 2023 takeover of Danone's Russian business, which was later sold to a nephew of Chechen leader Ramzan Kadyrov.