Putin places Russian assets of Auchan and Nestlé under temporary state management
Russian President Vladimir Putin has signed a decree placing the Russian assets of France's Auchan and Switzerland's Nestlé under temporary management by a company called L.E.V. Management. Neither company had exited Russia following the 2022 full-scale invasion of Ukraine.
Russian President Vladimir Putin has signed a decree transferring the Russian subsidiary assets of French retailer Auchan and Swiss food company Nestlé into the temporary management of a company called L.E.V. Management.
The same decree also covers a small, 0.007% stake that French group Adeo holds in Le Monlid, the Russian legal entity behind the Leroy Merlin home-improvement chain, which now trades under the Lemana PRO brand.
Earlier warning signs
In mid-August, the outlet Kommersant reported, citing sources, that a company called KS Logistika had petitioned Putin to impose temporary management on five of Nestlé's Russian legal entities. A source told the outlet this could mark the first stage of a broader ownership-transfer process, driven by the absence of capacity-expansion plans and a halt in exports of goods manufactured in Russia.
Companies' presence since the invasion
Neither Auchan nor Nestlé left the Russian market after Russia launched its full-scale invasion of Ukraine in 2022. Nestlé did, however, scale back operations there: it halted new investment, stopped selling certain brands including KitKat and Nesquik, and said it did not intend to seek profit from its Russian business.
Leroy Merlin's owner, by contrast, announced its departure from Russia back in 2023, and its stores have since operated under the Lemana PRO name.
