Putin Seizes Nestlé and French Corporate Assets in Russia

President Vladimir Putin signed a decree on September 17, 2026, placing the Russian assets of Swiss food giant Nestlé S.A. and several French companies under temporary external administration. The seized entities include the supermarket chain Auchan, the DIY chain Lemana Pro (formerly Leroy Merlin), and the logistics group FM Logistic. Control of these assets was transferred to L.E.V. Management, a Moscow-based firm reportedly headed by a Russian interior ministry general.

Kremlin spokesperson Dmitry Peskov justified the move by citing the actions of unfriendly countries and European military support for Ukraine. While Nestlé S.A. remains the legal owner of its six Russian factories and 7,000 employees, it has lost operational control. The company stated it is assessing its options and is committed to protecting its rights and ensuring business continuity. Nestlé S.A. further clarified that the transfer does not constitute nationalization and pledged to fulfill all obligations to its partners and staff.

The Swiss government and the French ministries of foreign and economy affairs condemned the seizures and are working to reverse the administration. Analysts note this follows a pattern established with companies like Danone and Carlsberg, where temporary state management served as a precursor to forced sales at significant losses. Although Russia accounts for just over 1% of Nestlé S.A.'s total sales, the company's shares fell up to 2% following the announcement, with potential write-offs estimated at one billion francs.