Russian President Vladimir Putin signed a decree on Thursday to transfer the assets of Swiss food giant Nestle and three French groups, including retailers Auchan and Leroy Merlin, to a company called LEV Management. This action places the local businesses under temporary external administration.
The Kremlin defended the move as a justified measure against firms representing unfriendly countries that back Ukraine. This is regarded as the largest takeover of foreign corporate assets since at least 2024, occurring amid rising tensions with Europe and Western sanctions against Moscow. Many Western companies previously sold their Russian holdings after the full-scale invasion of Ukraine, and the Kremlin has since made it difficult for firms to leave the country.
Nestle, the maker of KitKats and Nescafé, said it is assessing the situation and weighing its options. Meanwhile, Auchan and Lemana Pro stated that their Russian operations continue as normal. Switzerland called the seizure of Nestle's assets a worrying development and said it is working with the company to get the actions reversed.