Russia places Nestlé and Auchan under temporary management citing 'unfriendly' status

On 17 September 2026, Russian President Vladimir Putin signed a decree placing the Russian operations of Swiss food producer Nestlé and French retailer Auchan under temporary management by L.E.V. Management, a Moscow-based company registered in October 2024. The decree also transferred assets of former Leroy Merlin operations (now Lemana Pro), logistics companies FM Logistics and Bati Logistics, and NG Concept to the same manager.

Kremlin Spokesman Dmitry Peskov stated that the companies' status as entities from "unfriendly countries" that "actively support Ukraine's military operations against Russia" influenced the decision. Peskov attributed the move to these countries' involvement in military operations against Russia and strikes on civilian economic infrastructure. L.E.V. Management is led by Andrey Krayushkin, identified as first deputy head of Russia's migration agency, though the company showed no active business operations in 2025 filings.

Nestlé had scaled back operations since Russia's 2022 invasion of Ukraine, halting investments, discontinuing brands like KitKat and Nesquik, and declaring no intention to generate profit in Russia, though it continued producing basic goods including baby food. Auchan announced its intention to exit the Russian market in 2024 and had sold its operations to a firm controlled by 23-year-old businessman Tagir Shaymardinov in April 2024, though French media had previously reported interest from buyers including Gazprombank and businessman Alexey Mordashov.

The placement under temporary management follows a pattern established since April 2023 in which foreign-owned Russian subsidiaries are transferred to state or state-aligned management as a precursor to ownership changes. Previous cases include Carlsberg and Danone, which were subsequently nationalized. In August 2026, a previously obscure entity called K.S. Logistics had petitioned Putin to place five Nestlé Russian subsidiaries under temporary management, citing insufficient business expansion and halted exports. Nestlé stated it was studying the situation and intended to take necessary measures to protect its rights and ensure business continuity.

Both Auchan Retail Russia and Nestlé's Russian operations sought clarification following the decree. Bloomberg characterized the move as Russia's largest takeover of foreign corporate assets since at least 2024.