Under a decree issued on September 17, 2026, Russian President Vladimir Putin placed stakes and shares in 16 Russian companies linked to Swiss food group Nestlé and three French groups under the temporary administration of Russian company LV Management.
The decision covers Nestlé Russia and Nestlé Kuban, the Russian arm of French retailer Auchan, two local entities belonging to FM Logistic, and Le Monlid, the company operating the Lemana PRO store chain, formerly known as Leroy Merlin.
Nestlé assesses its options
Nestlé said in a statement dated September 18, 2026, that it was assessing the situation and the options available to it. It said it would take the necessary steps to protect its rights and ensure the continuity of operations in the interests of stakeholders, particularly employees.
Temporary administration does not formally transfer ownership
A mechanism adopted by Russia in 2023 allows the assets of companies from countries Moscow classifies as “unfriendly” to be placed under state-appointed management. At its current stage, the move does not formally transfer ownership, but it gives the appointed entity control over the management of the assets.
Kremlin spokesman Dmitry Peskov said that the companies’ presence in countries Moscow considers “unfriendly” was one of the factors taken into account. He stressed that the current decision was limited to imposing external management and did not involve any other decisions regarding ownership.
Growing restrictions on foreign assets
Moscow has previously used the temporary-administration mechanism for the Russian operations of foreign companies, including France’s Danone, Denmark’s Carlsberg and Finland’s Fortum. In some cases, temporary administration was followed by sales to Russian buyers, alongside mandatory discounts, exit taxes and government approval requirements for foreign companies seeking to withdraw.
