Russia seizes assets of Nestle, French firms

Russian President Vladimir Putin has granted temporary control over 16 Western-owned companies to a little-known firm called L.E.V. Management. The decree, signed on Thursday, places the management of stakes and shares in these businesses under L.E.V. Management's control. The move comes amid tensions between Russia and Western countries over sanctions imposed following Russia's invasion of Ukraine.

Kremlin spokesman Dmitry Peskov stated that one factor considered in this decision was the hostile stance of these Western nations, which are actively involved in military operations against Russia. The affected businesses include Nestlé Russia, Nestlé Kuban, Auchan's Russian subsidiary, and several local companies involved in the former Leroy Merlin DIY chain.

L.E.V. Management, registered in Moscow in October 2024, shows no active business operations in its publicly available 2025 accounts. Andrei Krayushkin was appointed its general director on 10 September, the week before the decree was issued. The move mirrors Russia's 2023 takeover of Danone's Russian business, which was previously under the management of Yakub Zakriev, a Russian interior ministry major general.

Nestlé, the largest affected company, employs around 7,000 people and operates six factories in Russia. The company has suspended most non-essential sales, imports, exports, advertising, and capital investment while continuing to supply essential products. Nestlé has not yet commented on the temporary administration.