A decree issued by Russian President Vladimir Putin on Thursday (17 September) led authorities to seize the remaining assets of three French companies, along with those of Swiss food giant Nestlé, in the latest response to Western sanctions against Moscow over the conflict in Ukraine.
Under the presidential decree, the Russian operations of Nestlé, French supermarket chain Auchan, and the former DIY chain Leroy Merlin, now known as Lemana Pro, were transferred to a company called LEV Management. The decree also covers the Russian subsidiaries of French logistics group FM Logistic.
Investigative outlet Novaya Gazeta Europe reported that LEV Management was established only at the end of 2025 and is run by a general from Russia's Interior Ministry. The company had no known prior business activity.
Most Western companies quickly sold or at least ring-fenced their Russian operations and holdings after the invasion of Ukraine, as sanctions made trading most goods more difficult. Since then, Russia has made it harder for companies to exit, requiring presidential approval for such deals or seizing assets outright.
Nestlé: 'We will take all necessary measures to protect our rights in Russia'
In a brief statement, Nestlé said it "is committed to taking all necessary measures to protect its rights and ensure the continuity of its business operations in the interest of all stakeholders, particularly its employees." It added that "the company is assessing the situation and its options," without giving details of its remaining operations in Russia.
Jean-Philippe Bertschy of Swiss investment bank Vontobel said he expects the financial impact on Nestlé to be limited, "given Russia's limited contribution to the group's sales." He said Russia now accounts for just over 1% of the group's sales, down from around 2% before the war in Ukraine. The company has suspended "the vast majority of sales, non-essential imports, advertising and capital investment," he said, while continuing to supply basic food items.
Auchan and Leroy Merlin are both controlled by the French Mulliez family, and each operates around a dozen stores in Russia. The latest seizure recalls Moscow's takeover, in 2023, of Danone's Russian operations, which were later sold to a nephew of Chechen leader Ramzan Kadyrov.
Source: Le Monde
