In a move that extends a now-familiar pattern of economic statecraft, President Vladimir Putin signed a decree transferring the Russian operations of Nestle, Auchan, Leroy Merlin, and FM Logistic to a newly formed state entity — a gesture Moscow frames as symmetrical justice against nations it considers adversaries. The action, affecting tens of thousands of workers and billions in corporate assets, reflects how the war in Ukraine has reshaped the boundaries between commerce and sovereignty. What began as a corporate exodus after 2022 has become, for those who stayed or could not leave, a slow
Russia seizes Nestle, French retailers' assets in retaliation for Ukraine support
Approximately 7,000 Nestle employees and over 33,000 Auchan employees in Russia face uncertain employment status following asset seizures.
Russia handed over the operations to a company that didn't exist six months ago.
Mark
So Russia just took these companies' assets. What's the actual mechanism here—did they just announce it and that was that?
Mimi
Putin signed a decree. That's the mechanism. The assets transferred to this new state company called LEV Management. No negotiation, no compensation that we know of.
Luke
Right, but we should be clear: we don't know what happens next. The decree transferred them, but Nestle and Auchan are still saying they're assessing options. That suggests the legal status might still be contested.
Mark
Why now? Why these companies specifically?
Mimi
The Kremlin says it's retaliation for their home countries supporting Ukraine. But there's also a practical angle—these companies were still operating in Russia, still generating value. Russia's been trying to keep Western firms trapped there.
Luke
Though Nestle had already scaled back massively. They're down to one percent of group sales. So it's not like they were profiting heavily from Russia anymore.
Mark
What about the employees? Seven thousand at Nestle, thirty-three thousand at Auchan.
Mimi
That's the human weight of this. They're now working for a state entity that didn't exist six months ago, headed by a Russian interior ministry general. No one knows what their employment terms will be.
Luke
And we don't have statements from those employees or their unions, so we're working with incomplete information about what this actually means for them day-to-day.
Mark
Has Russia done this before?
Mimi
Yes. Danone in 2023, Carlsberg too. Danone's business was later sold to a nephew of Chechen leader Ramzan Kadyrov. So there's a pattern of seizure followed by sale to connected figures.
Luke
Which is important context, but it's also speculation about what will happen here. We know the seizure happened. The rest is pattern-matching.
Mark
What's the financial hit?
Mimi
For Nestle, analysts estimate around 1.2 billion dollars if they have to write off the whole thing, including money they can't get out of Russia. But that's a worst-case scenario.
Luke
And that's one analyst's estimate. We should note that. Different firms will calculate it differently.
Il Polso
- Putin signed a decree handing four major Western companies' Russian operations to LEV Management, a shell entity created just months ago and led by an interior ministry general.
- Roughly 40,000 workers — 7,000 at Nestle and more than 33,000 at Auchan alone — now face deep uncertainty about their employment and the future of the businesses they work for.
- Nestle shares fell 2.3% in Zurich, with analysts warning that a full write-off of Russian assets and trapped funds could cost the company around $1.2 billion.
- The seizure follows the 2023 takeovers of Danone and Carlsberg's Russian operations, signaling that Moscow has shifted from blocking exits to actively absorbing foreign-owned enterprises.
- Affected companies are scrambling to assess their legal options, with Auchan formally requesting clarification from Russian authorities and Nestle pledging to protect its rights and ensure continuity for employees.
In a move that extends a now-familiar pattern of economic statecraft, President Vladimir Putin signed a decree transferring the Russian operations of Nestle, Auchan, Leroy Merlin, and FM Logistic to a newly formed state entity — a gesture Moscow frames as symmetrical justice against nations it considers adversaries. The action, affecting tens of thousands of workers and billions in corporate assets, reflects how the war in Ukraine has reshaped the boundaries between commerce and sovereignty. What began as a corporate exodus after 2022 has become, for those who stayed or could not leave, a slow-moving expropriation dressed in the language of retaliation.
On a Thursday evening, President Putin signed a decree transferring the Russian operations of Nestle, Auchan, Leroy Merlin, and FM Logistic to a state-controlled entity called LEV Management. The Kremlin described the move as a proportionate response to what it called unfriendly nations supporting Ukraine in a war now entering its fifth year.
LEV Management was, by any measure, a vessel built for the occasion. Created only at the end of 2025 with no prior business history, it was placed under the leadership of a general from Russia's interior ministry. The decree was the latest escalation in Moscow's campaign against Western firms that had either stayed in Russia or struggled to wind down their presence after the 2022 invasion.
Nestle's Russian footprint was meaningful but not vital — six factories, around 7,000 employees, and just over one percent of global sales. The company had already suspended advertising, non-essential imports, and capital investment, while continuing to supply basic food products. Analysts at Jefferies estimated that a full write-off, including funds the company had been unable to repatriate, could reach roughly $1.2 billion. Nestle shares fell 2.3 percent in Zurich.
Auchan's exposure was more immediate. With 241 stores, 62 of them hypermarkets, and a workforce of more than 33,000 in Russia, the French retailer was a significant economic presence in the country. Its Russian subsidiary requested formal clarification from authorities, saying it would comment further once official information was received.
The broader pattern was becoming unmistakable. Russia had previously seized the Russian operations of Danone and Carlsberg in 2023. For companies that remained — whether out of concern for employees or an inability to secure exit approval — the state was no longer merely blocking departures. It was moving to absorb. Whether Nestle and the French companies could negotiate terms with LEV Management, or whether their assets would ultimately be sold to connected Russian interests, remained an open question.
On Thursday evening, President Vladimir Putin signed a decree that handed over the Russian operations of Nestle, the Swiss food conglomerate, along with three major French companies to a state entity called LEV Management. The transfer included Auchan, a hypermarket chain; Lemana Pro, the rebranded version of Leroy Merlin; and FM Logistic, a French shipping company. The Kremlin framed the seizure as a proportionate response to what it called unfriendly nations backing Ukraine in a war now stretching into its fifth year.
LEV Management itself was a shell. According to reporting by Novaya Gazeta Europe, the company had been created only at the end of 2025 and had no prior business operations. Its leadership consisted of a general from Russia's interior ministry. The decree represented the latest escalation in Moscow's campaign against Western firms that had either remained in Russia or attempted to wind down their presence after the 2022 invasion of Ukraine.
Nestle's position in Russia was substantial but not central to the company's global footprint. The Swiss firm operated six factories across the country and employed roughly 7,000 people, primarily in coffee production, pet care, infant nutrition, and confectionery. Yet Russia accounted for just over one percent of Nestle's total sales—a decline from around two percent before the war began. The company had already suspended most of its sales, non-essential imports, advertising, and capital investment in the country, while continuing to supply essential food items. In a brief statement, Nestle said it was assessing the situation and its options, committed to protecting its rights and ensuring business continuity for its employees and other stakeholders.
Analysts at Jeffries brokerage noted that such seizures had historically preceded forced sales or outright expropriation. They pointed to precedents: Danone and Carlsberg had both undergone similar takeovers in 2023. For Nestle, a complete write-off of its Russian operations—including funds the company had been unable to move out of the country—could cost around one billion Swiss francs, or roughly 1.2 billion US dollars. The news sent Nestle shares down 2.3 percent on the Zurich exchange.
Auchan, controlled by France's Mulliez family, faced a more immediate operational challenge. The retailer was one of Russia's dominant players, with 241 stores including 62 hypermarkets and a workforce exceeding 33,000 people. On Friday, Auchan's Russian subsidiary requested clarifications from authorities about the decree, saying it would provide more detailed comments once it received official information. The company's scale in Russia—and the number of employees suddenly in limbo—made the seizure a significant economic event in the country itself.
Moscow's pattern was becoming clearer. When Western companies tried to leave Russia after sanctions made operations difficult, the government required presidential authorization for any asset sale or simply seized the holdings outright. Most major foreign firms had already exited or drastically scaled back. Those who remained, citing employee welfare or other concerns, found themselves trapped. The seizure of Nestle and the French retailers suggested that Russia was moving beyond blocking departures to actively consolidating control over foreign-owned enterprises. What happened next would depend on whether these companies could negotiate with LEV Management or whether, like Danone's Russian business before it, their assets would be sold off to connected Russian interests.
Citazioni salienti
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
This practice has historically often been a precursor to a forced sale or effective expropriation of operations in the market.— Jeffries brokerage analysts
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Politics & Governance