Russia has placed the local businesses of Nestlé, Auchan and other Western-linked companies under temporary administration. Nestlé is weighing its options, while Auchan and Lemana Pro say their Russian operations continue as normal.
A little-known Russian company called L.E.V. Management has been handed temporary control of 16 businesses linked to Nestlé, Auchan and several other Western groups.
President Vladimir Putin signed a decree on Thursday placing the management of stakes and shares in the 16 Russian companies under the control of the firm.
The move tightens Moscow’s control over Western-owned assets amid its confrontation with Western countries over sanctions imposed following Russia’s invasion of Ukraine.
“Of course, one of the factors taken into account when making this decision was that these are unfriendly countries, which are currently most actively involved in military operations against our country,” Kremlin spokesman Dmitry Peskov said at a press conference on Friday.
The businesses concerned include Nestlé Russia, Nestlé Kuban, French retailer Auchan’s Russian subsidiary, two local FM Logistic entities and Le Monlid, which operates the former Leroy Merlin DIY chain under the Lemana Pro brand.
The measure does not formally confiscate the businesses or change their ownership, according to Russian lawyers cited by business newspaper Kommersant. However, temporary administration has previously preceded the sale or transfer of Western-owned assets to Russian buyers.
L.E.V. Management was registered in Moscow in October 2024, and its shareholders are not publicly disclosed. According to Kommersant, the company showed no active business operations in its publicly available 2025 accounts.
Andrei Krayushkin was appointed its general director on 10 September, one week before the decree was issued. Independent outlet Novaya Gazeta Europe reported that his name and date of birth match those of a Russian interior ministry major general. This has not been independently confirmed.
Most Western companies quickly sold or ring-fenced their Russian businesses after Moscow launched its full-scale invasion of Ukraine in 2022. Russia has since made it increasingly difficult for foreign companies to leave, requiring presidential approval for deals and placing some assets under temporary administration.
In a statement, Nestlé said it was “assessing the situation and its options”.
“Nestlé is committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees,” it said.
Nestlé has around 7,000 employees and six factories in Russia. It has suspended most non-essential sales, imports and exports, as well as advertising and capital investment, while continuing to supply products it considers essential.
Jean-Philippe Bertschy of Swiss investment bank Vontobel said the financial impact was expected to be limited because Russia now accounts for around 1% of Nestlé’s group sales, down from approximately 2% before the war.
Auchan Retail Russia told Russian business news outlet RBC that it had asked the authorities to clarify the decree and would comment further after receiving more information. It said its stores and other facilities continued to operate normally.
Auchan employs around 30,000 people and operates approximately 230 stores and an online business in Russia.
Lemana Pro told Kommersant that it had not yet received official information from the authorities and continued to operate normally.
Leroy Merlin’s French parent company, Adeo, transferred control of its Russian business to local management in 2023. The operation was subsequently rebranded as Lemana Pro and now has 112 stores.
FM Logistic had not publicly commented at the time of publication.
The move echoes Moscow’s 2023 takeover of Danone’s Russian business. It was initially placed under the management of Yakub Zakriev, a nephew of Chechen leader Ramzan Kadyrov, before Danone sold the operation at a substantial discount in 2024.
Source: www.euronews.com
