Russia Seizes Nestle, Three French Firms' Assets Over "Hostile Actions"

The Kremlin stated Friday that hostile actions by unfriendly countries played a role in Russia's decision to take control of the assets of Swiss food giant Nestle and French retailer Auchan.

President Vladimir Putin signed a decree on Thursday placing the Russian operations of Nestle, Auchan, the former Leroy Merlin DIY chain (now Lemana Pro), and French logistics company FM Logistic under temporary administration. This move is action against Western firms since the seizure of French dairy company Danone and Danish brewer Carlsberg assets in 2023.

Kremlin spokesperson Dmitry Peskov said the states involved are currently involved in the most active manner in military actions against their country. The Swiss government expressed concern at Putin's move and is supporting Nestle in efforts to have it reversed. Nestle, maker of Nescafe coffee and KitKat chocolate bars, stated it is assessing the situation and committed to taking all necessary steps to protect its rights and ensure business continuity.

Nestle shares were down 2.4% at 1340 GMT. The management of the affected Russian companies has been transferred to L.E.V. Management, a Moscow-based company established in 2024. Andrei Krayushkin was appointed its general director on September 10. Nestle has operated in Russia since the 1990s, has six factories, and employs about 7,000 people there. Russia accounts for just over 1% of Nestle's group sales, down from around 2% before the Ukraine war. The measure does not necessarily amount to an immediate legal transfer of ownership but gives the appointed manager extensive authority over company operations.