Russia seizes assets of Swiss food giant Nestle and three French firms
Russia has seized the remaining assets of Swiss food giant Nestle and three French companies (Auchan, Lemana Pro, FM Logistic) by transferring them to a newly created Russian firm, LEV Management, in retaliation for Western sanctions over the Ukraine war.
Intelligence analysis by Gemini 2.5 Flash
President Vladimir Putin signed a decree to transfer the Russian operations of Nestle, Auchan, Lemana Pro (formerly Leroy Merlin), and FM Logistic to LEV Management, a company reportedly created in late 2025 and headed by a Russian interior ministry general. This action follows a pattern of Moscow making it difficult for Western firms to exit Russia or seizing their assets outright, i…
Imagine a big country is upset with other countries because of a big disagreement. To get back at them, it takes over the local shops and factories owned by companies from those other countries, even if those companies had already tried to leave or scale back. It's like when you're playing with your friends, and someone takes their toys because they're mad about something.
Analysis
The latest decree signed by Russian President Vladimir Putin marks a significant escalation in Moscow's response to Western sanctions, directly targeting the residual operations of major European firms. This move is part of a broader strategy by the Kremlin to exert control over foreign assets within its borders, particularly those belonging to companies from countries that have imposed sanctions following the full-scale invasion of Ukraine.
LEV Management
The assets of Nestle, Auchan, Lemana Pro (formerly Leroy Merlin), and FM Logistic have been transferred to a company named LEV Management. This entity, according to investigative outlet Novaya Gazeta Europe, was only established at the end of 2025 and is reportedly led by a Russian interior ministry general. The swift creation and leadership of LEV Management suggest a deliberate, state-orchestrated mechanism for asset appropriation, raising questions about transparency and the legal recourse available to the affected companies.
LEV Management's lack of prior known business activity further underscores its apparent role as a vehicle for these state-mandated transfers. This pattern echoes previous seizures, such as the 2023 takeover of Danone's Russian business, which was subsequently sold to an individual linked to Chechen leader Ramzan Kadyrov. Such actions demonstrate a clear intent by Russia to consolidate economic power and retaliate against perceived Western aggression.
Nestle
Swiss food giant Nestle, one of the targeted firms, issued a concise statement acknowledging the situation and affirming its commitment to protecting its rights and ensuring business continuity for stakeholders, especially employees. The company stated it is currently assessing its options, though it did not provide specific details regarding its remaining Russian operations. This cautious response reflects the complex legal and political landscape foreign companies navigate when facing asset seizures.
Financial analysts, such as Jean-Philippe Bertschy of Vontobel, anticipate a minimal financial impact on Nestle. Russia's contribution to Nestle's group sales had already dwindled to just over one percent, down from approximately two percent before the Ukraine war. Nestle had previously suspended the vast majority of its sales, non-essential imports, advertising, and capital investment in Russia, focusing primarily on supplying essential food items. This pre-emptive scaling back likely mitigated the potential financial fallout from the recent seizure.
Mulliez family
The French retailer Auchan and the former Leroy Merlin DIY chain, now operating as Lemana Pro, are both controlled by France's Mulliez family. These companies collectively maintain around a dozen outlets in Russia, representing a significant, albeit reduced, presence. The seizure of their assets highlights the vulnerability of even long-established foreign businesses in Russia, regardless of their efforts to adapt to the changing geopolitical climate.
The Mulliez family's companies, like many other Western firms, have faced immense pressure to either fully withdraw from Russia or significantly curtail their operations. This latest decree underscores the Kremlin's willingness to directly intervene and nationalize or transfer the remaining assets of companies that have not fully divested, further tightening its grip on the domestic economy and sending a stark warning to any remaining foreign investors.
Key points
- Russia has seized the remaining assets of Swiss food giant Nestle and three French firms: Auchan, Lemana Pro (formerly Leroy Merlin), and FM Logistic.
- President Vladimir Putin signed a decree transferring these assets to LEV Management, a company reportedly created in late 2025 and led by a Russian interior ministry general.
- This action is a retaliatory measure against Western sanctions imposed on Moscow following its invasion of Ukraine.
- Nestle stated it is assessing the situation, but analysts expect a small financial impact due to Russia's limited contribution to its global sales.
- The seizure echoes Russia's 2023 takeover of Danone's Russian business, indicating a pattern of asset appropriation.
This move could further deter any remaining foreign investment in Russia, leading to increased economic isolation and potentially more legal battles for the affected companies. It also signals a continued trend of asset nationalization, creating an unpredictable and hostile environment for international businesses.
