Russia seizes assets of Nestle, French firms over home countries’ support for Ukraine

Russian authorities seized the businesses and assets of Nestle, a Swiss food giant, along with three French firms including Auchan, a retailer, and the former DIY chain Leroy Merlin, now known as Lemana Pro. President Vladimir Putin transferred the Russian operations of these companies to a company called LEV Management. Additionally, the decree covers the Russian subsidiaries of the French logistics group FM Logistic.

France has called on Russian authorities to "reverse this decision". The Russian move is seen as retaliation against Western firms' support for Ukraine, as part of a series of sanctions imposed on the country. Most Western companies had already sold their Russian operations or scaled back their activities due to the ongoing conflict.

Nestle, which employs around 7,000 people in Russia, said it is evaluating its options and protecting its rights. The financial impact on Nestle is expected to be small as Russia accounts for only around 1% of the group's sales, down from 2% before the Ukraine war. However, analysts suggest a write-off of Nestle's Russia business could cost the company around 1 billion francs.

Auchan and Leroy Merlin, both controlled by the Mulliez family, have requested clarifications from Russian authorities. Auchan's subsidiary in Russia has 241 stores and over 33,000 employees. France condemned the move and urged Russia to reconsider its decision.