A few hours before the first legislative elections in wartime began in Russia and amid rising tensions with the European countries allied with Ukraine, the Kremlin chief, Vladimir Putin, ordered by decree to take control of the businesses of two major Western companies in the country, the French Auchan and the Swiss multinational Nestlé. In recent years, this measure has been a first step before large foreign firms were bought by Russian owners.
Read more The penthouse that Ayuso finds overwhelming: 224 pages without the key answers
According to the order signed on Thursday by the Russian president, the Russian subsidiaries of Auchan and Nestlé are transferred “to the temporary administration of the company L.E.V. Management.” The decree also includes other international companies, such as Bati Logistics, FM Logistics, and a 0.007% stake that the French group Adeo holds in Le Monlid, the Russian legal entity of Leroy Merlin, which now operates under the trade name Lemana PRO.
The temporary management mechanism is Moscow’s response to the international sanctions that countries supporting Kyiv began imposing on Russia after the war in Ukraine started in February 2022.
According to this procedure, the owner remains formally the owner, but cannot independently manage their company
It has been in effect since April 2023 and has been applied to dozens of businesses from “unfriendly countries” that have remained in the Russian market.
After this procedure is applied, the foreign owner formally retains ownership rights but can no longer independently manage their company.
In recent years, temporary management has been a first step for the company to begin changing ownership. In this way, Russia has nationalized the Russian business of many international companies, such as the Danish beer producer Carlsberg and the French yogurt company Danone.
The newspaper Kommersant wrote in August that a little-known company, KS Logistics, had asked Putin to consider transferring five Russian Nestlé structures to temporary administration, arguing that the Swiss company was not actively developing the business in Russia.
Read more The new revelations in the Andic case: “This witness has turned the investigation upside down”
More than a thousand international companies left Russia in 2022 after the outbreak of the war in Ukraine
After the outbreak of the war, more than a thousand international companies left the country. Others decided to stay, but the unexpected action taken against Auchan and Nestlé highlights the difficult business environment they face. The last time the Kremlin used this mechanism to take control of such a significant volume of assets was in 2024, when plants belonging to AB InBev Efes, a joint venture of the Belgian AB InBev and the Turkish Anadolu Efes, were placed under temporary management.
Nestlé, which has been present in Russia since 1994, suspended investments in advertising and manufacturing of a series of products in 2022, such as Nespresso coffee, San Pellegrino mineral water, KitKat chocolate, or Nesquik cocoa. But it promised to maintain the supply of baby food, cereals, and some pet foods.
In a statement, the Swiss company said on Friday that it had taken note of Putin’s decree and was evaluating the situation and its options. “Nestlé is committed to taking all necessary measures to protect its rights and ensure the continuity of its business operations for the benefit of all stakeholders, especially its employees,” the company said.
Auchan arrived in Russia in 2002 and currently operates 230 supermarkets and hypermarkets across the country. After the outbreak of the war, the French chain of the Mulliez Group decided not to leave the Russian market, arguing that its priority was to maintain the employment of its more than 30,000 employees and feed the population.
The owner of Leroy Merlin announced in 2023 that it was leaving Russia, and since then, the DIY and construction stores have operated under the brand Lemana PRO.
Read more Complete Guide to La Mercè 2026: concerts, shows, popular culture, open doors, and schedules
