Russia has seized the local assets of Swiss food giant Nestlé SA and French supermarket chain Auchan by placing their stakes in Russian enterprises under temporary management, according to Bloomberg. The move follows a decree from President Vladimir Putin transferring the asset shares to AO L.E.V. Menedzhment, a Moscow-based company registered in 2024.
Kremlin Targets Foreign Retail and Food Giants Through Temporary Management
The Russian government has increasingly utilized temporary management mechanisms since 2023 to seize assets belonging to companies from nations classified as unfriendly. According to the Yale School of Management, more than 1,000 companies have exited Russia or scaled back their operations since the Kremlin launched its war against Ukraine in 2022. Despite this exodus, major multinational corporations such as PepsiCo Inc. and Mondelez International Inc. continue to operate within the country.
Prior targets of state-administered temporary management include Danone SA and Carlsberg A/S. Russian authorities subsequently sold some of those acquired enterprises to owners tied directly to the Kremlin. Nestlé, which established operations in Russia during the 1990s, scaled down its footprint after 2022 by suspending select brands, halting non-essential imports and exports, stopping advertising, and freezing capital investments. Earlier in the year, the little-known entity KS Logistics petitioned President Putin to place Nestlé’s local structures under temporary management, as reported by the newspaper Kommersant, paving the way for a potential ownership shift.
Did you know? Auchan ranks among the earliest major Western retail chains to expand into Russia, opening its inaugural storefront there in 2002. The retailer subsequently scaled its footprint to manage 230 supermarkets and hypermarkets nationwide, according to its website.
Auchan and Nestlé Operations Under State Control
The transition of Nestlé and Auchan assets to AO L.E.V. Menedzhment places two major pillars of Russia’s consumer goods and retail sectors under temporary management.
Kommersant documented the initial petition earlier this year, setting the stage for the formal transfer of shares to AO L.E.V.
Frequently Asked Questions
Which companies have been placed under temporary management by Russia?
Russia has placed the local assets of Nestlé SA and Auchan under temporary management, transferring their stakes to AO L.E.V. Menedzhment. Previous targets of this mechanism include Danone SA and Carlsberg A/S.
What happened to Nestlé and Auchan’s operations in Russia?
Nestlé reduced its Russian operations following the 2022 war in Ukraine by halting non-essential imports, advertising, and capital investments. Auchan continued running its network of 230 supermarkets and hypermarkets across the country until the state assumed control of its local shares.
Who manages the seized assets now?
President Vladimir Putin ordered the transfer of the asset shares to AO L.E.V. Menedzhment, a company registered in Moscow in 2024.
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