Russia Seizes Control Of Nestlé, Auchan, Lemana Pro, 13 Other Western Companies In Russia | Sahara Reporters

The businesses include Nestlé Russia, Nestlé Kuban, Auchan’s Russian subsidiary, two FM Logistic entities and Le Monlid, which operates the former Leroy Merlin home-improvement chain under the Lemana Pro brand.

Russian President Vladimir Putin has placed the Russian operations of Nestlé, Auchan, Lemana Pro and other Western-linked companies under temporary management, transferring control of stakes in 16 businesses to a little-known Russian firm, L.E.V. Management.

Euronews reported that Putin signed the decree on Thursday, placing the management of shares and stakes in the affected Russian companies under L.E.V. Management.

The businesses include Nestlé Russia, Nestlé Kuban, Auchan’s Russian subsidiary, two FM Logistic entities and Le Monlid, which operates the former Leroy Merlin home-improvement chain under the Lemana Pro brand.

Kremlin spokesman Dmitry Peskov said the companies’ links to countries Russia considers “unfriendly” were among the factors considered in the decision.

He made the remarks at a press conference on Friday as Moscow continues its confrontation with Western countries over sanctions imposed after Russia’s full-scale invasion of Ukraine.

The measure does not formally transfer ownership of the companies, according to Russian lawyers. However, temporary administration has previously been followed by the sale or transfer of Western-owned businesses to Russian buyers.

L.E.V. Management was registered in Moscow in October 2024, while its shareholders have not been publicly disclosed. Kommersant reported that the company showed no active business operations in its publicly available 2025 accounts. Andrei Krayushkin was appointed its general director on September 10, one week before Putin issued the decree.

Nestlé said it was assessing the decision and considering its options. The Swiss food company said it would take necessary steps to protect its rights and maintain business operations in the interests of its stakeholders, including its employees.

Nestlé has about 7,000 employees and six factories in Russia. The company has reduced its activities in the country since the war began, suspending most non-essential sales, imports, exports, advertising and capital investment while continuing to supply products it considers essential.

Auchan said it had asked Russian authorities for clarification on the decree and would provide further comments after receiving more information. The retailer said its stores and other facilities in Russia were continuing to operate normally.

Lemana Pro, which replaced the Leroy Merlin brand in Russia after its French parent Adeo transferred control of the business to local management in 2023, also said it had not received official information about the decision and that its operations remained normal. The chain currently has 112 stores in Russia.

Russia has increasingly used temporary administration to take control of Western-owned businesses since 2022, when many foreign companies began reducing or ending their operations in the country. The mechanism has previously been applied to companies including Danone and Carlsberg, with some assets later sold to Russian buyers.

The latest decree places the Russian operations of several major Western companies under temporary management while leaving their formal ownership unchanged for now. Nestlé is reviewing its options, while Auchan and Lemana Pro say their Russian businesses continue operating.