Russia places local assets of Nestle, Auchan and French logistics firms under external administration

Presidential decree targets European groups

Russian President Vladimir Putin signed a decree late on Thursday, 17 September 2026, placing the Russian operations of Swiss food producer Nestle and French retailer Auchan under temporary administration. The order also applies to Russian subsidiaries of French logistics company FM Logistic, international logistics firm BATI Group, and Le Monlid, which operates the home improvement retail chain Lemana Pro (formerly Leroy Merlin).

All targeted entities were placed under the control of L.E.V. Management, a Moscow-based entity registered in 2024. Reports from Novaya Gazeta Europe indicate that the firm was established toward late 2025 and is headed by a general from the Russian Interior Ministry, having conducted no prior public commercial activity. The transfer follows a petition from Russian company KS Logistika, which asked the Kremlin to place five Nestle-owned entities under state administration.

Scale of affected operations

The decree targets substantial retail and manufacturing infrastructure built over decades. Nestle entered Russia during the 1990s and operates six factories producing coffee, pet food, and infant formula, employing 7,000 workers. The Swiss group generated approximately 2 billion Swiss francs in Russian revenue in 2021, though the country now represents roughly 1% of its global sales after it paused non-essential imports, exports, and capital investments following the 2022 invasion of Ukraine.

Auchan established its Russian presence in 2002 and remains one of the largest foreign retailers in the country, operating 229 stores with 24,236 employees at the end of 2025. In the first half of 2026, the supermarket chain recorded sales of 127 billion roubles (approximately $1.5 billion). Unlike many European peers that sold or wrote down operations after 2022, Auchan maintained active retail trading across the country.

Auchan24,236

Nestle7,000

Auchan

24236 employees

Nestle

7000 employees

Data from the article text

Kremlin justification and previous precedents

A decree signed in 2023 established legal mechanisms allowing Moscow to place companies from declared unfriendly states under external administration. Moscow law firm NSP estimated in 2025 that the Russian state has seized more than $50 billion worth of private property, including foreign-owned commercial assets, since 2022. Similar decrees previously transferred Russian units of French dairy group Danone and Danish brewer Carlsberg to temporary administrators before selling them to Russian buyers at discounted prices.

Kremlin spokesman Dmitry Peskov addressed the move on Friday, linking the measure to European involvement in geopolitical hostilities.

“At the moment, we're taking about the introduction of external management. No other decisions have been made so far.”

Russian newspaper Kommersant reported that Nestle drew official scrutiny due to its refusal to expand manufacturing capacity or resume goods exports from Russian facilities.

Corporate reactions and market impact

Nestle stated on Friday that it had not received prior communication from Russian authorities before the decree was announced, and said it was evaluating legal and operational paths to safeguard its assets.

“Nestle is 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.”

Auchan declined to comment on the management takeover. Jean-Philippe Bertschy, an analyst at Swiss private bank Vontobel, observed that the financial fallout for Nestle should remain contained because the Russian market accounts for just over 1% of total corporate revenues. Foreign companies attempting to exit Russia face mandatory asset sale discounts, state exit taxes, and special government approval processes.