Moscow has linked the move to Western support for Ukrainian strikes on Russian infrastructure<\/p>\n
President Vladimir Putin has ordered the Russian subsidiaries of Nestle, Auchan and Leroy Merlin placed under temporary management owing to Western support for Ukrainian strikes on Russian civilian and economic infrastructure.
\nMoscow introduced the temporary management mechanism in 2023 in response to Western companies leaving Russia and the seizure of Russian state and private assets abroad. Officials said it was intended to keep strategically important businesses operating and shield the economy from decisions by \u201cunfriendly\u201d countries.
\nOn Thursday, Putin amended the 2023 decree to add the Russian assets of Nestle, Auchan and Leroy Merlin to the list. All three were transferred to L.E.V. Management, a business and management consultancy.
\nWhy now?
\nKremlin spokesman Dmitry Peskov said the companies\u2019 home countries and their support for Kiev were major factors behind the decision.<\/p>\n
Read more<\/p>\n
Moscow slams Finland\u2019s Stubb for backing Kiev\u2019s strikes on Russian businesses (VIDEO)<\/p>\n
\u201cWe are talking about European companies, companies from unfriendly countries,\u201d he told journalists on Friday. \u201cThese are unfriendly countries that are actively involved in military actions against our country,\u201d Peskov said, adding that some also support Ukrainian strikes \u201cagainst our civilian economic infrastructure.\u201d
\nWhy these companies?
\nAuchan and Leroy Merlin are controlled by France\u2019s Mulliez family through ELO Group and ADEO respectively. Nestle\u2019s Russian business was controlled by subsidiaries of the Swiss food giant.
\nFrance has been one of Kiev\u2019s major military backers throughout the conflict. President Emmanuel Macron also pushed a \u201cforward deterrence initiative\u201d\u00a0earlier this year that could see French nuclear weapons deployed elsewhere in Europe.
\nMoscow has warned that such a strategy could backfire, saying it cannot \u201cignore an obvious buildup of the nuclear component of NATO\u2019s joint potential.\u201d<\/p>\n
Read more<\/p>\n
Lowering the nuclear threshold: Is NATO\u2019s new \u2018deterrence\u2019 initiative a path to disaster?<\/p>\n
Switzerland, meanwhile, has backed EU sanctions against Russia, prompting Moscow to designate it an \u201cunfriendly nation.\u201d Bern has also considered easing restrictions on the re-export of Swiss-made weapons to Ukraine, sparking criticism from the country\u2019s largest party that its longstanding neutrality is being eroded.
\nStrikes on Russian infrastructure
\nThe takeover also comes amid continued Ukrainian attacks on Russian civilian and energy infrastructure.
\nUkraine has recently targeted warehouses and logistics facilities belonging to Russia\u2019s largest online retailer, Wildberries, and its rival Ozon. Kiev has acknowledged deliberately striking the facilities, claiming their networks are used by the Russian military to procure, store and transport dual-use goods. Moscow rejects the allegations and has denounced the attacks as terrorism.
\nUkrainian media reported in July that French intelligence was providing \u201ccritical targeting assistance\u201d for strikes on at least eight Wildberries facilities, as well as refineries and other infrastructure.
\nHow important is Russia to the companies?
\nRussia has been a significant market for the French retailers. At its peak, Auchan Russia was one of the country\u2019s largest foreign retail chains and was still operating around 230 stores as of 2025. ELO reported in 2023 that Russia generated 10% of its revenue, making it the group\u2019s third-largest market after France and Spain.<\/p>\n
Read more<\/p>\n
US firms lost $300 billion by leaving Russia \u2013 RDIF<\/p>\n
ADEO relinquished operational control of its Russian subsidiary in 2023, handing management to local executives. However, documents obtained by French investigative outlet L\u2019Informe indicated that ADEO continued to classify the operation as a subsidiary and an \u201cautonomous business unit.\u201d
\nLeroy Merlin, rebranded as Lemana PRO in Russia in 2024, remained a major source of revenue for ADEO. L\u2019Informe reported that Russia was the group\u2019s second-largest market by revenue after France in 2024 and accounted for around 18.5% of its worldwide revenue in 2025.
\nNestle has less exposure. Its Russian operations account for about 1% of global sales, according to Jean-Philippe Bertschy, an analyst at Swiss investment bank Vontobel. RBK estimated Nestle Russia\u2019s revenue at 258 billion rubles ($3.06 billion) in 2025.
\nHow have the companies reacted?
\nAuchan and Lemana PRO said they had received no official notification from the Russian authorities about the status of their assets and had requested clarification. Both said their stores were operating normally as of Friday.
\nNestle said it \u201ctakes note\u201d of the presidential decree and is \u201cassessing the situation and its options.\u201d The company said it would take \u201call necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders.\u201d
\nWhat happens to the assets?
\nUnder the 2023 framework, foreign owners temporarily lose control of assets placed under management but do not automatically forfeit ownership.<\/p>\n
Read more<\/p>\n
Italian electrical giant announces return to Russia<\/p>\n
Some assets have been transferred directly to Russian state bodies. In 2023, the Russian operations of Germany\u2019s Uniper and Finland\u2019s Fortum were placed under the Federal Property Management Agency.
\nIn other cases, Moscow has authorized sales. Putin approved the sale of Goldman Sachs\u2019 Russian subsidiary to Balchug Capital in January 2025.
\nThe system also allows assets to be returned. In March 2025, Italian appliance maker Ariston regained control of Ariston Thermo Rus after announcing its return to the Russian market. The subsidiary had been placed under the temporary management of Gazprom Household Systems the previous year.
\nPrime Minister Mikhail Mishustin said in 2025 that cases would be assessed individually. Companies that left under government pressure but preserved jobs, contacts and technology, as well as a buy-back option, could be allowed to return, he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Moscow has linked the move to Western support for Ukrainian strikes on Russian infrastructure President Vladimir Putin has ordered the Russian subsidiaries of Nestle, Auchan and Leroy Merlin placed under…<\/p>\n","protected":false},"author":1,"featured_media":38458,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-38457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t