Vladimir Putin has signed a decree transferring the Russian assets of Auchan, Nestlé, the former Leroy Merlin and other foreign groups to the temporary management of JSC «L.E.V. Management». Formally, the document does not refer to this as nationalisation, but foreign owners are effectively losing the ability to manage their businesses in Russia independently.
Briefly about the main points
- Putin’s decree covered 31 companies with foreign capital.
- Shares in «Auchan», «Lemana PRO» and Nestlé subsidiaries were transferred to management.
- The list also includes FM Logistic’s Russian assets.
- The management company was registered in Moscow in October 2024.
- Nestlé is exploring legal avenues to protect its rights.
The decree covers retail, food production and logistics
The document lists 31 companies. Among the largest are the Russian subsidiaries of the French Auchan, the Swiss company Nestlé, the logistics operator FM Logistic, and «Leman PRO», which previously operated under the Leroy Merlin brand.
The new manager was transferred 100% shares in OOO «Auchan» and OOO «Lemana PRO», as well as all Russian assets Nestlé, including «Nestlé Russia» and «Nestlé Kuban». Auchan remained on the Russian market after 2022: the chain has around 230 shops in 100 towns and cities.
Nestlé has been operating in Russia since 1994 and has six production sites. Following the outbreak of full-scale war, the company halted new investments and advertising, reduced its product range, but continued to produce some goods, including baby food and specialised nutrition products.
Legally speaking, this is not a confiscation, but control passes to the manager
The Kremlin describes this mechanism as temporary administration, rather than confiscation or nationalisation. It is based on a decree dated April 2023, which allows the assets of companies from so-called «unfriendly countries» to be placed under external administration.
The provisional administrator is granted extensive powers as the owner, although formally he cannot dispose of the assets as the ultimate owner. For foreign groups, this means a loss of operational control over their Russian subsidiaries.
Previous cases involving Danone and Carlsberg resulted in the sale of assets or the transfer of the business to entities linked to Russian interests. However, the decree does not specify a buyer, the value or the timeframe for the possible disposal of the current assets.
The management company was set up less than two years ago
L.E.V. Management JSC was registered in Moscow in October 2024. Its chief executive is Andrei Krayushkin, whilst information about the owners is not publicly disclosed.
According to the available financial statements, the company did not carry out any significant business activities in 2025. Following the publication of the decree, «Lemana PRO» told RBC that it had not received any official clarification from the Russian authorities and was continuing to operate as normal.
Nestlé is assessing the protection of its rights in relation to its Russian business
Nestlé has stated that it is assessing all available options for protecting its rights following the transfer of the business to external administration. Before the war, the Russian market generated around 2 billion Swiss francs in annual sales for the group, and its facilities employed approximately 7,000 people.
Analysts suggest that it may be difficult for the company to regain control of its assets or to receive full market compensation. The Russian authorities have not specified the future arrangements for the management or possible sale of these assets.
