Moscow has linked the move to Western support for Ukrainian strikes on Russian infrastructure
President Vladimir Putin has ordered the Russian subsidiaries of Nestle, Auchan and Leroy Merlin placed under temporary management owing to Western support for Ukrainian strikes on Russian civilian and economic infrastructure.
Moscow introduced the temporary management mechanism in 2023 in response to Western companies leaving Russia and the seizure of Russian state and private assets abroad. Officials said it was intended to keep strategically important businesses operating and shield the economy from decisions by “unfriendly” countries.
On Thursday, Putin amended the 2023 decree to add the Russian assets of Nestle, Auchan and Leroy Merlin to the list. All three were transferred to L.E.V. Management, a business and management consultancy.
Why now?
Kremlin spokesman Dmitry Peskov said the companies’ home countries and their support for Kiev were major factors behind the decision.
“We are talking about European companies, companies from unfriendly countries,” he told journalists on Friday. “These are unfriendly countries that are actively involved in military actions against our country,” Peskov said, adding that some also support Ukrainian strikes “against our civilian economic infrastructure.”
Why these companies?
Auchan and Leroy Merlin are controlled by France’s Mulliez family through ELO Group and ADEO respectively. Nestle’s Russian business was controlled by subsidiaries of the Swiss food giant.
France has been one of Kiev’s major military backers throughout the conflict. President Emmanuel Macron also pushed a “forward deterrence initiative” earlier this year that could see French nuclear weapons deployed elsewhere in Europe.
Moscow has warned that such a strategy could backfire, saying it cannot “ignore an obvious buildup of the nuclear component of NATO’s joint potential.”
Switzerland, meanwhile, has backed EU sanctions against Russia, prompting Moscow to designate it an “unfriendly nation.” Bern has also considered easing restrictions on the re-export of Swiss-made weapons to Ukraine, sparking criticism from the country’s largest party that its longstanding neutrality is being eroded.
Strikes on Russian infrastructure
The takeover also comes amid continued Ukrainian attacks on Russian civilian and energy infrastructure.
Ukraine has recently targeted warehouses and logistics facilities belonging to Russia’s largest online retailer, Wildberries, and its rival Ozon. Kiev has acknowledged deliberately striking the facilities, claiming their networks are used by the Russian military to procure, store and transport dual-use goods. Moscow rejects the allegations and has denounced the attacks as terrorism.
Ukrainian media reported in July that French intelligence was providing “critical targeting assistance” for strikes on at least eight Wildberries facilities, as well as refineries and other infrastructure.
How important is Russia to the companies?
Russia has been a significant market for the French retailers. At its peak, Auchan Russia was one of the country’s largest foreign retail chains and was still operating around 230 stores as of 2025. ELO reported in 2023 that Russia generated 10% of its revenue, making it the group’s third-largest market after France and Spain.
ADEO relinquished operational control of its Russian subsidiary in 2023, handing management to local executives. However, documents obtained by French investigative outlet L’Informe indicated that ADEO continued to classify the operation as a subsidiary and an “autonomous business unit.”
Leroy Merlin, rebranded as Lemana PRO in Russia in 2024, remained a major source of revenue for ADEO. L’Informe reported that Russia was the group’s second-largest market by revenue after France in 2024 and accounted for around 18.5% of its worldwide revenue in 2025.
Nestle has less exposure. Its Russian operations account for about 1% of global sales, according to Jean-Philippe Bertschy, an analyst at Swiss investment bank Vontobel. RBK estimated Nestle Russia’s revenue at 258 billion rubles ($3.06 billion) in 2025.
How have the companies reacted?
Auchan and Lemana PRO said they had received no official notification from the Russian authorities about the status of their assets and had requested clarification. Both said their stores were operating normally as of Friday.
Nestle said it “takes note” of the presidential decree and is “assessing the situation and its options.” The company said it would take “all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders.”
What happens to the assets?
Under the 2023 framework, foreign owners temporarily lose control of assets placed under management but do not automatically forfeit ownership.
Some assets have been transferred directly to Russian state bodies. In 2023, the Russian operations of Germany’s Uniper and Finland’s Fortum were placed under the Federal Property Management Agency.
In other cases, Moscow has authorized sales. Putin approved the sale of Goldman Sachs’ Russian subsidiary to Balchug Capital in January 2025.
The system also allows assets to be returned. In March 2025, Italian appliance maker Ariston regained control of Ariston Thermo Rus after announcing its return to the Russian market. The subsidiary had been placed under the temporary management of Gazprom Household Systems the previous year.
Prime Minister Mikhail Mishustin said in 2025 that cases would be assessed individually. Companies that left under government pressure but preserved jobs, contacts and technology, as well as a buy-back option, could be allowed to return, he said.
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