A decree signed by President Vladimir Putin on 17/9 transferred all business operations in Russia of the Swiss food group Nestle, French retailer Auchan, and supermarket chain Lemana Pro (formerly Leroy Merlin) to LEV Management. The decree also applies to the Russian subsidiaries of the French group FM Logistic.
"One of the factors considered in making the decision was that these are unfriendly nations, countries most actively involved in military actions against Russia," Kremlin spokesperson Dmitry Peskov stated.
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The Nestle group logo on the facade of a building in Issy-les-Moulineaux, Paris, France, in 8/2025. Photo: AFP |
The Nestle group logo on the facade of a building in Issy-les-Moulineaux, Paris, France, in 8/2025. Photo: AFP
Novaya Gazeta Europe, based in Latvia, reported that LEV Management was established in late 2025 and is headed by an official from the Russian Interior Ministry. The company had no prior business operations.
Nestle confirmed its commitment to protecting its rights and ensuring business continuity for stakeholders, especially employees. A Nestle representative noted that the company operates 6 factories in Russia with about 7,000 employees, primarily producing coffee, pet food, baby nutrition, and confectionery.
Jean-Philippe Bertschy, managing director at Swiss investment bank Vontobel, suggested the financial impact on Nestle would be insignificant. He cited the Russian market's very small contribution to the group's revenue, currently over 1%, down from about 2% before the conflict.
Auchan and Leroy Merlin are both controlled by the Mulliez family in France, which also owns the Decathlon sports retail chain.
Auchan's Russian subsidiary on 18/9 requested clarification from authorities regarding President Putin's decree. The company is a leading retailer in Russia, with 241 stores nationwide, including 62 hypermarkets and over 33,000 employees, according to its website.
The French Foreign Ministry and Economy Ministry issued a joint statement condemning Russia's decision and urged its withdrawal.
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The logo of French supermarket chain Auchan on a shopping center wall in Moscow in 8/2020. Photo: AFP |
The logo of French supermarket chain Auchan on a shopping center wall in Moscow in 8/2020. Photo: AFP
Asset seizure represents Russia's latest move against Western businesses, made in response to a series of sanctions related to the Ukraine conflict.
Most Western companies sold their operations and assets in Russia after the conflict erupted in 2022, as sanctions made trading most goods difficult. Some businesses chose to remain but significantly reduced their scale of operations.
Vu Hoang (According to Reuters, AFP, AP)
