Russian state authorities have seized control of the local operations belonging to prominent Western retail and logistics giants, transferring key foreign subsidiaries into temporary management under a newly established domestic firm. According to reporting by Novaja gazeta Jevropa, Russian dictator Vladimir Putin signed a decree placing the Russian businesses of food conglomerate Nestle, French hypermarket chain Auchan, and home-improvement retailer Leroy Merlin—recently rebranded as Lemana Pro—under the control of an entity named LEV Management. The same regulatory decree also extends state-managed receivership to the Russian operational units of French logistics group FM Logistic.
Corporate Transfers and the Rise of LEV Management
The entity designated to manage these seized Western assets, LEV Management, was created at the very end of 2025, according to investigations published by Novaja gazeta Jevropa. Corporate registries indicate that LEV Management possesses no recorded prior business activity or historical commercial operations before taking over the multi-billion-dollar infrastructure of major international brands.
Western economies watched as consumer brands rushed to divest their Russian assets following the launch of full-scale military hostilities against Ukraine. Companies faced immense pressure to sell or uncouple their Russian units because sweeping international sanctions severely complicated cross-border trade, financial settlements, and supply chain logistics.
Regulatory Hurdles and Asset Nationalization
Leaving the Russian market has become an increasingly difficult and costly endeavor for international corporations. According to market analysts and trade monitors, the Russian state has steadily erected administrative barriers to trap foreign capital inside the country.
Industry Insight: Any corporate exit from Russia now requires direct approval from Vladimir Putin. Alternatively, the state frequently bypasses traditional corporate sales entirely, choosing instead to execute direct seizures or forced transfers of foreign-owned physical and financial assets.
For multinational retailers like Auchan and Leroy Merlin, which built extensive brick-and-mortar footprints across Moscow, St. Petersburg, and other regional hubs, these decrees effectively terminate their ability to recover value from decades of local investment. Nestle and FM Logistic face similar valuation write-downs as their supply chains and manufacturing plants fall under state-directed receivership.
Frequently Asked Questions
Which major Western companies were affected by the recent decree?
The decree transfers the Russian businesses of Nestle, Auchan, Leroy Merlin (Lemana Pro), and FM Logistic into temporary management.
What is LEV Management?
According to Novaja gazeta Jevropa, LEV Management is an entity established at the end of 2025 with no recorded prior economic activity before taking over these foreign assets.
Why are Western companies struggling to leave Russia?
The Russian government requires direct presidential approval for corporate exits and frequently implements asset seizures or forced state management instead of allowing standard market sales.
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