Russian President Vladimir Putin signed a decree on September 17 to place the local operations of Nestle and Auchan under temporary external administration. Control of these assets has been transferred to AO L.E.V. Management, a Moscow-based firm established in 2024 and reportedly led by a general from the Russian Interior Ministry.
The decree also affects related entities, including FM Logistic and Lemana Pro. Following the announcement, Nestle shares declined by approximately 2% on the Zurich stock exchange. The Kremlin stated that the move is a response to military aid provided to Ukraine by Switzerland and France.
Nestle operates six factories in Russia with about 7,000 employees. In 2021, its Russian sales reached approximately 2 billion Swiss francs, or $2.4 billion. Auchan manages about 230 stores in the country with 30,000 employees, reporting revenue of about 127 billion rubles, or $1.5 billion, in the first half of 2026.
Since 2022, Russia has seized over $50 billion in foreign assets. Previous cases involving Danone and Carlsberg in 2023 resulted in the assets being sold to local buyers at significant discounts, despite the initial designation of temporary administration.
