Russia seizes Nestle, French firms' assets in latest Western business crackdown

President Vladimir Putin signed a decree late Thursday that handed over the Russian operations of Nestle, the French retailer Auchan, the home improvement chain Leroy Merlin (now operating as Lemana Pro), and the French logistics company FM Logistic to a newly formed entity called LEV Management. The Kremlin framed the seizure as justified retaliation against corporations from countries it deems hostile to Russia—nations that have backed Ukraine in its war against Russian invasion, now in its fifth year.

LEV Management itself is a curious instrument of this policy. According to reporting by Novaya Gazeta Europe, the company was created only at the end of 2025 and has no documented business history. It is led by a general from Russia's interior ministry. The decree represents the latest escalation in Moscow's campaign against Western firms that have either tried to withdraw from the Russian market or maintained operations there despite international sanctions.

When Western companies began pulling out of Russia following the 2022 invasion of Ukraine, most faced a stark choice: sell their assets and operations, or watch them become increasingly isolated and unprofitable as sanctions made ordinary commerce nearly impossible. Many chose to exit. But Russia has made departure difficult, requiring presidential approval for asset sales or simply seizing holdings outright. The pattern has become familiar enough that it now reads as policy.

Nestle, the Swiss food conglomerate, acknowledged the seizure in a brief statement, saying it remained "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." The company did not disclose the scale of its Russian holdings, but analysts suggest the financial blow will be manageable. Jean-Philippe Bertschy, an analyst at the Swiss investment bank Vontobel, noted that Russia now accounts for just over one percent of Nestle's global sales—down from roughly two percent before the war began. Nestle has already suspended most of its Russian operations, including the vast majority of sales, non-essential imports, advertising, and capital investment, while continuing to supply essential food items.

Auchan and Leroy Merlin present a different picture. Both are controlled by France's Mulliez family, and Auchan in particular maintains a substantial footprint in Russia. The company operates 241 stores across the country, including 62 hypermarkets, and employs more than 33,000 people. On Friday, Auchan's Russian subsidiary issued a statement requesting "clarifications" from authorities about the decree, saying it would provide more detailed comment once it received official information. The company's scale in Russia—it is among the country's largest retailers—means the seizure affects tens of thousands of workers whose employment status is now uncertain.

This move is not Russia's first. In 2023, Moscow took control of Danone's Russian business, which was subsequently sold to a relative of Chechen leader Ramzan Kadyrov. The pattern suggests that seized assets do not simply vanish into state coffers; they are transferred to connected individuals or newly created entities that serve as vehicles for redistribution. Each seizure signals that Western firms remaining in Russia do so at the state's pleasure, and that pleasure can be withdrawn at any moment.