Russian President Vladimir Putin has signed a decree placing the Russian assets of Swiss food company Nestle and French supermarket chain Auchan under temporary administration. This move, announced on September 17, 2026, transfers the management of these assets to L.E.V. Management. This decision escalates pressure on foreign companies operating in Russia amid ongoing geopolitical tensions.
The decree specifically impacts Nestle Kuban and Nestle Russia. For Nestle Kuban, 67.44% of shares belonging to Societe des Produits Nestle S.A. and 32.56% owned by Nestle Deutschland AG are now under temporary management. Similarly, for Nestle Russia, 84.082% of shares from Societe des Produits Nestle S.A. and 15.918% from Nestle Deutschland AG have been transferred. The decree also affects the Russian subsidiary of Auchan and assets of the former Leroy Merlin.
This action follows an earlier request in August 2026 by a Russian company named KS Logistika, which asked Putin to place five of Nestle's Russian units under temporary management. The business was reportedly valued at approximately $2 billion to $2.13 billion, with assets and brands accounting for $1.4 billion to $1.46 billion and undistributed profits of $470 million to $585 million. Nestle, which entered the Russian market in 1994 and suspended its investment program in 2024, operates six production sites in Russia, producing a range of food products.
The Russian government has previously used this mechanism to take control of foreign-owned assets, including the subsidiaries of companies like Carlsberg and Danone in 2023. Nestle had continued to operate in Russia, arguing its role as a supplier of essential goods. This latest move underscores Russia's increasing intervention in foreign corporate operations and the potential for a change of ownership for these assets.
