In the fifth year of a war that has reshaped the boundaries of commerce and sovereignty alike, Russia has once again reached into the operations of Western corporations — this time seizing the Russian holdings of Nestle, Auchan, Leroy Merlin, and FM Logistic and placing them under a state entity with no business history. The decree, signed by President Putin, frames expropriation as retaliation, but it also reveals the deeper logic of economic warfare: that the assets of private enterprise can become instruments of geopolitical leverage. For the more than 40,000 workers whose livelihoods now h
Russia seizes Nestle, French firms' assets in retaliation for Ukraine support
Approximately 40,000+ employees of affected companies face uncertain employment status and operational disruption due to asset seizure.
Russia has made it difficult for firms to leave
Mark
Why does Russia keep doing this? They've already driven out most Western companies. What's the point of seizing what's left?
Mimi
It's partly symbolic—showing domestic audiences that the state punishes countries backing Ukraine. But it's also practical. These companies still generate revenue and employ people. Taking them lets Russia control that economic activity and potentially redirect profits.
Luke
Though we should note the Kremlin's stated justification is retaliation. Whether that's the primary motive or a secondary one, we can't really know from outside.
Mark
So Nestle loses a billion francs. That's real money. But the source says Russia is only one percent of their sales now. Why would they have stayed at all?
Mimi
They kept operating because they employ 7,000 people there. Pulling out entirely means those workers lose their jobs. It's a genuine ethical tension—do you abandon your workforce to make a political point, or do you stay and risk expropriation?
Luke
And we should be clear: Nestle says it's assessing its options, but the company hasn't actually lost the money yet. The estimate of one billion francs is what analysts think could happen if the seizure becomes permanent and they write off the assets. That's a projection, not a confirmed loss.
Mark
What about Auchan? Thirty-three thousand employees is a lot more than Nestle's workforce.
Mimi
Much bigger operational footprint. Auchan runs hypermarkets across Russia—it's embedded in the retail economy. The seizure affects far more people, though the financial impact on the parent company is probably smaller relative to their overall business.
Luke
The source doesn't give us Auchan's revenue breakdown by country, so we don't actually know how material Russia is to their bottom line. We know the store count and employee numbers, but not the financial exposure.
Mark
Is this the end of it, or will Russia keep seizing more?
Mimi
The pattern from 2023 suggests this is how Russia operates now. Once a company is seized, it either stays under state control or gets sold to a connected buyer. There's no mechanism for Western firms to recover their assets.
Luke
Though it's worth noting we don't have confirmation of what will happen to these specific companies yet. The decree was signed Thursday. Auchan asked for clarifications. We're in the immediate aftermath, not the resolution.
Der Puls
- Putin signed a decree transferring four major Western companies' Russian operations to a newly created state entity, LEV Management, led by an interior ministry general with no documented commercial track record.
- Nestle alone faces losses estimated at one billion Swiss francs, and its stock dropped 2.6 percent in Zurich — a sharp reminder that geopolitical risk can materialize overnight.
- Auchan's 241 stores and 33,000 Russian employees now operate under state control, while the French government has condemned the seizure and demanded Moscow reverse course.
- The move mirrors Russia's 2023 forced takeovers of Danone and Carlsberg, cementing a pattern in which Western firms are trapped: staying risks expropriation, while leaving requires presidential authorization that may never come.
- For the roughly 40,000 employees across all four companies, the seizure has created immediate and unresolved uncertainty about their jobs, their managers, and the future of the workplaces they depend on.
In the fifth year of a war that has reshaped the boundaries of commerce and sovereignty alike, Russia has once again reached into the operations of Western corporations — this time seizing the Russian holdings of Nestle, Auchan, Leroy Merlin, and FM Logistic and placing them under a state entity with no business history. The decree, signed by President Putin, frames expropriation as retaliation, but it also reveals the deeper logic of economic warfare: that the assets of private enterprise can become instruments of geopolitical leverage. For the more than 40,000 workers whose livelihoods now hang in the balance, the collision of great powers is not an abstraction but a daily reality.
President Putin signed a decree transferring the Russian operations of Nestle, Auchan, Leroy Merlin, and FM Logistic to a newly created state company called LEV Management — an entity established only at the end of 2025 with no documented business history, headed by a general from Russia's interior ministry. The Kremlin framed the move as justified retaliation against firms from countries it deems hostile for supporting Ukraine.
Nestle, which runs six factories in Russia employing around 7,000 people, said it would work to protect its rights and ensure continuity for its workforce. Analysts estimated the financial blow at roughly one billion Swiss francs, accounting for seized assets and capital the company has been unable to repatriate. Its shares fell 2.6 percent in Zurich. Russia now accounts for just over one percent of Nestle's global sales, limiting the proportional damage — though not the symbolic weight.
Auchan faces a more operationally significant disruption. The French retailer's Russian subsidiary runs 241 stores, including 62 hypermarkets, and employs more than 33,000 people. The company sought clarifications from Russian authorities but offered no immediate public response. France's foreign and economy ministries issued a joint condemnation, calling on Moscow to reverse the decision.
The seizures follow a pattern set in 2023, when Russia took control of Danone's Russian business — later sold to a relative of Chechen leader Ramzan Kadyrov — and forced similar transfers at Carlsberg. Western companies have long faced an impossible calculus: those that stayed to protect employees and food supplies now risk expropriation without compensation, while those seeking to exit face bureaucratic walls requiring presidential approval that rarely arrives. For the more than 40,000 workers across the four affected companies, that geopolitical deadlock has become a very immediate question about the future of their jobs.
President Vladimir Putin signed a decree late Thursday that transferred the Russian operations of Nestle, the Swiss food conglomerate, along with three major French companies to a newly created state entity called LEV Management. The seizure included Auchan, a major retailer; Leroy Merlin, a DIY chain now operating under the name Lemana Pro; and FM Logistic, a French logistics subsidiary. The Kremlin framed the move as justified retaliation against firms from countries it considers hostile for their support of Ukraine.
LEV Management, according to investigative reporting by Novaya Gazeta Europe, was established only at the end of 2025 and has no documented business history. It is headed by a general from Russia's interior ministry. The decree represents the latest escalation in Moscow's campaign against Western corporations that have maintained operations in Russia despite the war in Ukraine, now in its fifth year of conflict.
Nestle operates six factories across Russia and employs approximately 7,000 people, primarily in coffee production, pet care, infant nutrition, and confectionery manufacturing. The company issued a brief statement saying it remained committed to protecting its rights and ensuring business continuity for all stakeholders, particularly its workforce. Analysts at the Swiss investment bank Vontobel estimated the financial impact could reach around one billion Swiss francs when accounting for seized assets and capital the company has been unable to move out of the country. Nestle's stock fell 2.6 percent on the Zurich exchange following the announcement. The seizure is less damaging proportionally because Russia now represents just over one percent of Nestle's global sales, down from approximately two percent before the invasion.
Auchan, controlled by France's Mulliez family, faces a more substantial operational disruption. The company's Russian subsidiary operates 241 stores across the country, including 62 hypermarkets, and employs more than 33,000 people. Auchan's Russian operations requested clarifications from authorities regarding the decree but offered no immediate response to the seizure itself.
France responded swiftly. The foreign and economy ministries issued a joint statement condemning the action and calling on Moscow to reverse course. The move follows a pattern established in 2023, when Russia seized Danone's Russian business, which was subsequently sold to a relative of Chechen leader Ramzan Kadyrov. Carlsberg faced similar forced asset transfers during the same period.
Western companies have faced an impossible situation since the Ukraine invasion. Most departed quickly or isolated their Russian operations as sanctions made normal commerce untenable. Those that remained, citing concerns for employees and local populations, drastically reduced their activities while maintaining essential food supplies. But Russia has made exit difficult, requiring presidential authorization for asset sales or simply seizing holdings outright. The pattern suggests that staying carries its own risk: companies that attempt to maintain operations face the prospect of expropriation without compensation. Those seeking to leave encounter bureaucratic barriers designed to trap them in place. For the roughly 40,000 employees of Nestle, Auchan, Leroy Merlin, and FM Logistic in Russia, the seizure creates immediate uncertainty about their employment status and the future of their workplaces.
Bemerkenswerte Zitate
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.— Nestle statement
France condemns the move and urges Moscow to reverse this decision.— French foreign and economy ministries joint statement
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