Russian President Vladimir Putin signed a decree on Friday transferring to temporary state administration the Russian assets of Switzerland's Nestlé and of three French companies: the supermarket chain Auchan, the home-improvement retailer Leroy Merlin — which operates in the country as Lemana Pro — and the logistics group FM Logistic.
The measure rests on the framework created in 2023, which allows assets of companies based in countries the Kremlin classifies as "unfriendly" to be placed under temporary control. In practice, management passes to a third party appointed by the government without formal ownership changing hands — an arrangement that, in earlier cases, preceded the sale of the assets to local buyers.
Who takes over
The decree hands the operations to a company called LEV Management (also cited as L.E.V. Management), created in late 2025, with no known commercial track record and headed by a general of the Russian Interior Ministry.
The size of what was taken
- Nestlé — six factories in the country and around 7,000 employees. In 2021, Russian sales came to roughly 2 billion Swiss francs (about $2.4 billion). Analyst Jean-Philippe Bertschy estimates Russia now accounts for just over 1% of the group's global sales, down from about 2% before the invasion.
- Auchan — 241 stores, including 62 hypermarkets, plus its online operation, and more than 33,000 employees. The chain is one of the last large Western retailers still operating in Russia after 2022.
- Leroy Merlin (Lemana Pro) and FM Logistic — both French, with a significant presence in building-materials retail and in distribution.
The Kremlin's justification
Spokesman Dmitry Peskov cited "hostile actions" by "unfriendly" countries, saying those states are "involved in the most active manner in military actions against our country". Moscow treats suppliers of weapons to Kyiv, France among them, as parties to the conflict. Switzerland, which sends no weapons, made the list by joining Western sanctions.
What the companies say
Nestlé said it was "committed to taking all necessary steps to protect its rights" and that it would assess "the situation and its options". Auchan requested "clarifications" from the Russian authorities and said it would offer "more detailed comments" once it had the information. There was no public statement from the French or Swiss governments as of publication.
Not the first time
The most-cited precedent is 2023, when France's Danone and Denmark's Carlsberg had their Russian operations placed under temporary administration — and were later sold to groups close to the government. The pattern gives the measure of the risk for those who stayed: the decree does not formally confiscate, but it strips the parent company of control over what happens to the business from then on.
With information from France 24, The Moscow Times, Channels Television, CNN and Euronews.
