Stay – and Lose Control: Auchan, Nestlé and Leroy Merlin in Russia
Russian assets of Auchan and Nestlé, as well as the legacy Leroy Merlin, were transferred to the temporary management. The KSE Institute contrasts these cases with companies such as Unilever, H&M and McDonald’s, which accepted significant exit costs but completed their withdrawal from Russia.
In a story that reveals the complex nature of Russian asset management, three foreign companies—Auchan, Nestlé, and Leroy Merlin—found themselves in a precarious situation after the start of the full-scale war in Russia. Unlike some of their counterparts who chose to exit the market, these companies decided to stay, hoping to protect their assets and jobs.
However, their decision ultimately placed their assets under temporary management, which may be seen as a form of indirect expropriation. This mechanism allows the Russian government to retain ownership while preventing the foreign company from controlling the business operations. The strategy of "staying while minimizing the presence" did not prove effective in safeguarding the companies' assets from Russian state intervention.
Written by urgent.news from Kyiv Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
