Putin Seizes Nestle, Auchan, and French Firms in First Major Asset Grab Since 2023

Key points

• Putin signed a decree on Thursday placing Nestle, Auchan, Lemana Pro, and FM Logistic under temporary external administration.
• The assets are being transferred to a shell company named LEV Management, which was created in late 2025 and is headed by a Russian interior ministry general.
• Nestle’s Russian operations account for approximately 2% of its global sales, valued at roughly 1.7 billion Swiss francs annually.
• Auchan, controlled by the Mulliez family, operates 230 stores and employs 30,000 people in Russia.
• Kremlin spokesperson Dmitry Peskov stated the decision was linked to France’s status as an 'unfriendly' country actively involved in military action against Russia.
• This is the first such seizure of Western-owned assets since Moscow took control of Danone and Carlsberg subsidiaries in 2023.

Background

In 2023, Russia established a legal framework allowing the government to place assets of 'unfriendly' countries under temporary administration. This led to the seizure of businesses owned by companies like Danone and Carlsberg, which were later sold at steep discounts to Kremlin-linked investors. For instance, Danone’s Russian subsidiary was eventually placed under the leadership of a nephew of Chechen leader Ramzan Kadyrov. Switzerland, while not an EU member, has largely adopted EU sanctions against Russia, prompting Moscow to criticize the country’s neutrality. Recent archive reports from August 2026 indicated that Putin had signed a decree to nationalize 'critical infrastructure' and that Ukraine was expanding its campaign against Russian private assets, setting the stage for this latest move.

How outlets are covering it

CNBC emphasizes the immediate financial impact on Nestle, noting a 2.2% drop in shares and the company’s statement about assessing its options. The Financial Times provides deeper context on the broader pattern, highlighting that previous seizures of Danone and Carlsberg assets led to sales to Kremlin allies, and notes that Auchan is one of the largest Western retailers remaining in Russia. France 24 focuses on the specific entities targeted, including FM Logistic, and reports that LEV Management was created only at the end of 2025 with no prior business activity. While all sources agree on the seizure, the Financial Times and France 24 provide more detail on the specific companies affected and the historical precedent of asset sales to Kremlin-linked figures, whereas CNBC focuses more on the immediate market reaction and Nestle’s response.

Why it matters

This seizure signals a renewed and aggressive push by the Kremlin against Western companies still operating in Russia, particularly those from countries deemed 'unfriendly' due to their support for Ukraine. It underscores the risks faced by multinational corporations that have not exited the Russian market, as temporary administration often serves as a precursor to permanent transfer of control to state-aligned entities. The move also highlights the escalating tensions between Russia and Western nations, with Moscow using economic leverage to retaliate against sanctions and military support for Ukraine. For investors and businesses, it serves as a stark warning of the unpredictable and potentially severe consequences of maintaining operations in Russia amid the ongoing conflict.

What to watch

Nestle and other affected companies are expected to continue assessing their legal and operational options, potentially seeking international arbitration or other legal remedies to protect their assets. The Kremlin may proceed to transfer the assets to Kremlin-friendly investors, following the pattern seen with Danone and Carlsberg. Switzerland, which has adopted EU sanctions, may face further diplomatic and economic pressure from Russia, potentially leading to a vote on stricter interpretations of its neutrality. The situation may also prompt other Western companies to reconsider their presence in Russia or seek to exit the market entirely to avoid similar seizures.