Russian President Vladimir Putin ordered the local businesses of Swiss food giant Nestle and French retailer Auchan placed under temporary administration, according to decrees issued in September 2026. The Kremlin tied the move to their home countries’ status as unfriendly nations actively involved in hostilities against Moscow.
Presidential Decrees Target Western Multinationals
Russian authorities seized the remaining business operations and local assets of major Western corporations, including Swiss food manufacturer Nestle and three French groups (according to regional reporting). The sweeping action stems from a presidential decree signed by Russian President Vladimir Putin late Thursday, shifting control of the affected entities to a newly designated corporate management firm.
The administrative takeover swept up prominent commercial entities across the Russian market. Affected businesses include the retail chain Auchan and the do-it-yourself home improvement stores formerly operating as Leroy Merlin and currently known as Lemana Pro. The decree also targets the Russian operations of international logistics provider FM Logistic alongside affiliates of the logistics firm BATI Group, routing their local oversight directly through a company called L.E.V. Management.
The Kremlin Cites Unfriendly Nations and Hostilities
Speaking to journalists on Friday, Kremlin spokesperson Dmitry Peskov explained that the state intervention was driven by geopolitical friction and operational grievances. The government applied a 2023 law permitting temporary administrative control over commercial entities tied to nations deemed unfriendly to Moscow.
Two European companies from unfriendly countries… and are currently actively participating in hostile acts against us Dmitry Peskov, Kremlin Spokesperson, via Finance.yahoo.com
Peskov added that authorities factored in Ukraine’s strikes on civilian economic infrastructure when executing the seizure. Russian state media outlets defended the intervention as a lawful sovereign measure designed to protect the national economy, preserve domestic jobs, and ensure an uninterrupted supply of essential goods to citizens in the face of international sanctions.
Nestle Assesses Operations Amid Financial Shocks
Nestle, which established a commercial footprint in the Russian market back in 1994, responded to the decree by stating that it is evaluating the situation and exploring available options to safeguard corporate interests and employee welfare.
Financial analysts note that the forced administrative shift carries a limited direct sting for the overarching parent company. Jean-Philippe Bertchi, an analyst at Swiss investment bank Vontobel, observed that Russia accounts for slightly more than 1% of the group’s overall sales, down from roughly 2% prior to the 2022 full-scale invasion of Ukraine. While the multinational previously curtailed advertising, capital investments, and non-essential imports, it maintained operations across six local manufacturing facilities dedicated to coffee, pet care, and infant nutrition.
Precedents of State Seizures and Corporate Exits
The temporary administration mechanism mirrors past state interventions deployed against Western enterprises operating inside Russia. Financial historians and market watchers point directly to the 2023 state seizure of French dairy giant Danone and Danish brewer Carlsberg. In both prior cases, businesses placed under temporary external management ultimately faced forced sales to new Russian owners under steep financial discounts and burdensome exit taxes.
Investigative reporting published by independent outlet Novaya Gazeta Europe highlighted that L.E.V. Management was established in late 2025 and lacks any prior commercial track record, with leadership roles reportedly assigned to a general within the Ministry of Internal Affairs. Meanwhile, other multinational titans such as PepsiCo and Mondelez International continue maintaining active commercial operations inside the country.
