Russia seizes assets of Nestle, French firms

Russia's President Vladimir Putin delivers a televised address to the nation ahead of the parliamentary election, in Moscow. [AFP]

Russian authorities have seized the residual businesses and assets of Swiss food giant Nestle and three French groups, the latest move against Western firms in response to sanctions against Moscow over its war against Ukraine.

A decree signed by President Vladimir Putin issued late Thursday transferred the Russian operations of Nestle, French retailer Auchan and the former Leroy Merlin DIY chain, now known as Lemana Pro, to a company called LEV Management.

The decree also covers the Russian subsidiaries of French logistics group FM Logistic.

Investigative outlet Novaya Gazeta Europe reported that LEV Management was created only at the end of 2025, and is headed by a Russian interior ministry general. It had no known business activity.

Most Western companies quickly sold their Russian operations and holdings after the Ukraine invasion, or at least isolated them, as sanctions have made trading in most goods difficult.

Russia has since made it difficult for firms to leave, requiring presidential authorisation for deals, or seizing the assets outright.

In a short statement, Nestle said it was "committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees".

"The company is assessing the situation and its options," it added, without providing details of its residual Russian operations.

Jean-Philippe Bertschy of the Swiss investment bank Vontobel said he expected the financial impact to Nestle would be small "given Russia's limited contribution to group sales".

He said Russia now accounted for just over one percent of the group's sales, down from around two percent before the Ukraine war.

It has suspended "the vast majority of sales, non-essential imports, advertising and capital investment", he said, while continuing to supply essential food items.

Auchan and Leroy Merlin are both controlled by France's Mulliez family, and each have around a dozen outlets in Russia.

The latest seizure echoes Moscow's 2023 takeover of Danone's Russian business, which was later sold to a nephew of Chechen leader Ramzan Kadyrov.