Russia transfers Nestle and three French firms' Russian operations to LEV Management

Russian authorities have transferred the Russian operations of Swiss food group Nestle and three French companies to a firm called LEV Management, according to a decree signed by President Vladimir Putin. The move affects the Russian businesses of Auchan, the former Leroy Merlin chain now known as Lemana Pro, and logistics group FM Logistic. It is the latest state action against Western firms that remained in Russia after the full-scale invasion of Ukraine.

Sponsored

The decree was issued late on Thursday, and the transfer covers the residual businesses and assets of the companies named in the order. The supporting material says Moscow has made it harder for foreign firms to leave the country, requiring presidential authorisation for deals or seizing assets outright. It also says most Western companies sold their Russian operations quickly after the invasion, or isolated them as sanctions made trading in many goods more difficult.

Nestle said it was committed to taking steps to protect its rights and ensure continuity of business operations in the interests of stakeholders, particularly employees. The company said it was assessing the situation and its options, but did not give details of its remaining Russian operations. A Swiss investment bank analyst said the financial impact on Nestle was expected to be small because Russia now accounts for just over 1% of group sales, down from about 2% before the war.

He added that Nestle had suspended most sales, non-essential imports, advertising and capital investment, while still supplying essential food items. The decision matters because it shows how Russia is continuing to reshape the position of foreign companies that have not fully exited the market. It also underlines the pressure created by sanctions linked to the war in Ukraine, which have altered trade, investment and corporate ownership structures.

Sponsored

For companies still operating in Russia, the decree raises fresh questions about control, legal protection and the future of remaining assets. The supporting material says LEV Management was created only at the end of 2025 and is headed by a Russian interior ministry general. It also says the company had no known business activity before receiving the assets.

That detail adds to concerns about how the transferred businesses may be managed and what the practical consequences will be for employees, suppliers and customers in Russia. What remains unclear is how quickly the transfer will be implemented and whether the affected companies will be able to challenge it. It is also not clear what compensation, if any, may be offered, or how the move will affect day-to-day operations.

The next developments to watch are any further statements from the companies involved, the Russian authorities, or any legal response from the firms named in the decree.

#Russia #Nestle #Auchan #LemanaPro #FMLogistic #LEVManagement #sanctions #assetseizure

Sponsored