President Vladimir Putin signed a decree late Thursday transferring the Russian operations of Swiss food conglomerate Nestlé, French retailer Auchan, the former Leroy Merlin chain now operating as Lemana Pro, and logistics group FM Logistic to a firm called LEV Management.
The move represents the latest escalation in Moscow’s campaign against Western businesses operating in the region, often cited as retaliation for sanctions imposed over the war in Ukraine. According to the investigative outlet Novaya Gazeta Europe, LEV Management was established at the end of 2025 and is led by a general from the Russian interior ministry, with no prior record of business activity.
Nestlé responded by stating it is committed to protecting its rights and ensuring operational continuity for stakeholders, particularly employees. A representative confirmed the company is currently assessing the situation and its legal options but did not disclose details regarding its remaining Russian footprint.
Financial analysts suggest the impact on Nestlé may be minimal. Jean-Philippe Bertschy of the Swiss investment bank Vontobel noted that Russia now accounts for just over one percent of the group’s total sales, a significant drop from the roughly two percent share held before the conflict began. He added that the company has already suspended most non-essential imports, advertising, and capital investments, while continuing to supply essential food products.
Auchan and Lemana Pro are both owned by France’s Mulliez family and each maintains approximately a dozen outlets in Russia. The seizure mirrors a precedent set in 2023, when Moscow forcibly took over Danone’s Russian operations, which were subsequently sold to a relative of Chechen leader Ramzan Kadyrov.
While most Western corporations swiftly divested or isolated their Russian holdings following the invasion of Ukraine, Moscow has increasingly restricted their ability to exit. The government now requires presidential authorization for such deals and has frequently resorted to outright asset seizures for firms that remain.
I wonder if the employees at these stores are being compensated or just handed off like luggage.
How does a general with no business experience suddenly run a major retail empire? It’s deeply suspicious.
Seizing brands and renaming them is just theft with a PR team. This will never be legal or forgiven.
Is Russia really worth that last one percent of sales? Nestlé seems to be managing the risk better than most.