Putin Orders Temporary Administration of Nestle Assets in Russia
The decree could lead to forced sales later, as Russia has used temporary administration to transfer Western-owned assets to Kremlin-linked buyers.
- On Thursday, Russian President Vladimir Putin signed a decree placing Russian subsidiaries of French retailer Auchan and Swiss food company Nestle under temporary management, marking significant governmental intervention in foreign corporate operations.
- Neither Auchan nor Nestle exited Russia following the 2022 invasion of Ukraine, though Nestle scaled back operations by halting investments and stopping sales of brands including KitKat and Nesquik.
- The decree also placed a 0.007% stake held by French group Adeo in Monlid, the Russian entity of Leroy Merlin, under temporary management; the stores now operate under the Lemana PRO brand.
- In mid-August, Kommersant reported that Logistika requested this temporary management for Nestle, a move the outlet noted "could be the first stage in an ownership-transfer process."
- This strategic shift underscores a notable escalation in measures affecting global businesses within Russia, as the state assumes oversight of foreign corporate assets.
254 Articles
254 Articles
Putin Transfers Nestlé, Auchan Stakes to $177 Moscow Firm With One Employee
Russia placed the local businesses of Swiss food giant Nestle and French supermarket chain Auchan under temporary administration on September 17, explicitly linking the move to European military support for Ukraine.
Vladimir Putin's decree fell late Thursday, September 17th. He entrusts the assets in Russia of these multinationals as well as those of FM Logistic to an unknown Russian micro-enterprise, a screen company that inherits the burden of their "temporary administration". Pending their nationalization or resumption by a close relative of the regime.
“A warning to companies that remain”: Russia takes control of Nestlé and Auchan’s assets – companies that stayed in Russia following the full-scale invasion of Ukraine
Russia has placed the Russian assets of French retailer Auchan, Swiss food giant Nestlé, and the former Leroy Merlin chain under temporary management, stripping the companies of effective control over their businesses in the country. Foreign companies have long been urged to leave Russia because their continued operations generate revenue for a state waging war against Ukraine. They also face growing risks of asset seizure, legal and financial l…
Putin nationalizes Nestlé and Auchan's russian operations - RetailDetail EU
Russia is placing the Russian operations of Nestlé, Auchan, and Lemana Pro—the former Leroy Merlin—under its own "temporary" management. Once again, several major Western companies are losing effective control over their Russian assets.
Nestlé, a food company, is considering legal action against Russia's President Putin's coercive administration of the Russian subsidiary.
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