Putin places Auchan and Nestlé Russian assets under temporary state control
President Vladimir Putin signed a decree putting the Russian subsidiaries of Auchan and Nestlé under the temporary management of L.E.V. Management.
President Vladimir Putin issued a decree that placed the Russian subsidiaries of France's Auchan and Switzerland's Nestlé under the temporary management of L.E.V. Management. The same decree also placed a 0.007% share owned by French group Adeo in Le Monlid, the Russian entity of Leroy Merlin, which now runs stores under the Lemana PRO brand, under similar control.
In August, KS Logistika reportedly requested the temporary management of five Nestlé legal entities, arguing that the company had no plans to expand capacity and had halted exports of Russian-made goods. Both Auchan and Nestlé remained in Russia after the full-scale invasion of Ukraine in 2022; Nestlé has curtailed investment, withdrawn brands such as KitKat and Nesquik, and stated it does not expect to profit there. Leroy Merlin announced its exit in 2023, leading to the rebranding of its stores. The move signals a possible step toward transferring ownership of these foreign assets.
Why it matters
The decree gives the Russian state direct control over major foreign retail assets, affecting market dynamics and foreign investment.
How the sides frame it
HIGH AGREEMENTAll camps report Putin's decree placing foreign company assets under temporary Russian management, differing only in the amount of contextual detail they provide.
LEFT
Temporary state control strips foreign owners of decision-making while they formally remain owners, with mention of a request that may signal the first step toward expropriation.
CENTER
Temporary management removes owners' control of their Russian subsidiaries, citing a logistics firm’s request as a possible precursor to broader seizure.
RIGHT
The decree consolidates foreign assets under a Russian firm, presented as part of a wider trend of multinationals exiting or handing over stakes after sanctions.
The left emphasises
- the assets are placed under temporary management of L.E.V. Management
- companies remain owners but cannot control their holdings
- KS Logistika’s request may be the first phase of expropriation
The right emphasises
- the decree moves assets to Russian firm L.E.V. Management
- the action reflects a broader trend of firms leaving Russia after the invasion
- foreign companies now lose direct control of their Russian operations
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