Russia places Nestlé, Auchan, and Lemana Pro assets under state administration

Presidential decree transfers foreign assets

Russian President Vladimir Putin signed a decree on 17 September 2026 placing the Russian operations of Swiss food corporation Nestlé, French supermarket group Auchan, and home improvement chain Lemana Pro under temporary state receivership. The decree transfers management authority over the assets to a Russian company named L.E.V. Management. The order also includes three Russian subsidiaries owned by French logistics provider FM Logistic. Foreign parent corporations formally retain property ownership under the decree, but lose all decision-making and operational authority over their Russian holdings. Nestlé responded to the announcement through Swiss financial news agency AWP.

We are currently checking the facts.

Structure and leadership of L.E.V. Management

The recipient entity, L.E.V. Management, was registered in Moscow in October 2024. Investigative outlet Novaya Gazeta Europe reported that corporate records show no commercial activity through the end of 2025, an unknown ownership structure, and a workforce of only one employee. The company's chief executive is Andrei Krayushkin, whose name and birth date match those of an Interior Ministry general who previously served as first deputy head of the Migration Directorate between 2016 and 2020.

According to its accounting documents, it exercised no activity, at least until the end of that same year. It has only one employee. Its owners are unknown.

Impact across retail networks and food production

The decree covers key subsidiaries across the affected groups, including Nestlé Russia, Nestlé Kuban, Nestlé Deutschland AG, and Société des Produits Nestlé. Operations in Russia generate approximately 2% of Nestlé's global revenue, and investment bank JPMorgan estimates that a distressed forced sale could reduce earnings per share by up to 4%. For Auchan, which operates dozens of hypermarkets and employs over 33,000 workers across Russia, the decree seizes shares held through French entity Sogepar. In the case of Lemana Pro, formerly Leroy Merlin, the measure transfers a 99.993% stake held by UAE-based Scenari Holding LP and a 0.007% holding held by French company Adeo. Both Auchan and the former Leroy Merlin network are controlled by the French Mulliez family, whose sports retailer Decathlon suspended Russian operations in March 2022.

Petitions and past state takeovers

The presidential decree follows an August 2026 petition by Russian logistics company KS Logistika, which asked Vladimir Putin to place five Nestlé legal entities under state management after the Swiss firm halted investments and brand exports. Lemana Pro told the TASS news agency that it received no prior notification regarding the transfer and requested official clarifications from authorities. In autumn 2024, French media reported that Auchan was seeking to sell its Russian business, with two potential purchasers identified, including Gazprombank. The move follows similar measures taken against foreign companies since 2022, including the 2023 seizures of Russian assets owned by Danone, Carlsberg, and Heineken, after which Danone's subsidiary was transferred to a nephew of Chechen leader Ramzan Kadyrov.