Russia grabs Nestle assets in biggest seizure since 2024
Russia | One day ahead of Russia’s Duma elections (18–20 September), whose outcome was predictable, President Vladimir Putin ordered the Russian businesses of Swiss food giant Nestle and French supermarket chain Auchan to be placed under temporary administration by a company called AO L.E.V. Menedzhment. According to Bloomberg, that company was registered in Moscow in 2024 with a charter capital of just RUB 15,000 (USD 177) and a single employee.
The Kremlin’s surprise action against Nestle and Auchan highlights the increasingly difficult business environment faced by international companies that have decided to remain in Russia. More than 1000 western firms have left the country after Mr Putin ordered the full-scale invasion of Ukraine in 2022 and Moscow was hit with multiple rounds of international sanctions. Still, many major names, including PepsiCo, Mondelez International, and Raiffeisen Bank International continue to operate in Russia, although they have scaled back their operations.
Nestle said in a statement (18 September) that it took note of Mr Putin’s decree and was assessing the situation and its options. Auchan Retail Russia said it had requested clarification of the decree and would provide a more detailed response once it has received the relevant information.
Assets by Carlsberg and AB-InBev-Efes were taken, too
Russia has re-nationalised dozens of international assets since 2023, when it amended legislation to create a temporary management mechanism, allowing the state to seize control of holdings owned by companies from countries it considers “unfriendly”. Prominent among them are French dairy and water firm Danone and Danish brewer Carlsberg (both in July 2023).
Orders for temporary management have often been followed by transfers of assets to Russian buyers approved by the authorities, many of them with links to the Kremlin. Danone and Carlsberg had their assets briefly returned to them, but were then required to sell them to Russian companies at big discounts.
Still, Mr Putin’s decree on Nestle and Auchan was unexpected, says Bloomberg. The Kremlin had not used the mechanism since at least 2024, when the breweries belonging to AB-InBev-Efes, a joint venture between AB-InBev and Turkey’s Anadolu Efes, were placed under the temporary management of the Vmeste Group. The brewing group was renamed Napitki Vmeste (“Drinks Together”) in September 2025.
Nestle’s Russian workforce is over 7000 people
Nestle has operated in Russia since the 1990s but scaled back its business after 2022, suspending some brands and halting non-essential imports and exports, as well as advertising and capital investment. The Swiss firm has six plants in Russia, employing more than 7000 people. Russia accounts for about 2 percent of Nestle’s global sales, equivalent to roughly CHF 2 billion (USD 2.5 billion) annually. Losing control of its Russian assets could amount to a write-off of about CHF 1 billion, according to analysts.
