4 hrs ago
Putin Seizes Nestlé and Auchan Assets Under Temporary Administration
Russia has taken temporary control of parts of two foreign companies, Nestlé and Auchan.
President Vladimir Putin ordered the companies’ Russian stakes to be given to a firm called AO L.E.V. Menedzhment.
The order was published on Thursday.
Russia says this temporary-management system is used for companies from countries it considers unfriendly.
Nestlé reduced some activities in Russia after 2022 but continued running offices and factories there.
Auchan has a large network of about 230 stores in Russia.
The Russian government previously used the same approach with companies such as Danone and Carlsberg.
Nestlé and Auchan did not immediately provide comments on the latest action.
President Vladimir Putin ordered Russian stakes in Nestlé and Auchan assets transferred to AO L.E.V. Menedzhment.
The decree was published Thursday on Russia’s official legal portal.
Russia has used temporary administration since 2023 against companies from countries it considers “unfriendly.”
Nestlé reduced its Russian operations after 2022 but continued operating offices and factories.
Auchan operates about 230 supermarkets and hypermarkets in Russia, according to its website.
- Who
- President Vladimir Putin ordered action involving Nestlé SA, Auchan, and AO L.E.V. Menedzhment.
- What
- Russia placed stakes in the companies’ local assets under temporary administration.
- Where
- The affected assets are in Russia.
- When
- The decree was published Thursday; a request involving Nestlé was reported earlier this year.
- Why
- Russia uses temporary administration for assets belonging to companies from countries it considers “unfriendly.”
Key facts
- Decree issuer
- President Vladimir Putin
- New administrator
- AO L.E.V. Menedzhment, registered in Moscow in 2024
- Companies affected
- Nestlé SA and Auchan
- Publication
- The decree appeared Thursday on Russia’s official legal portal
- Nestlé’s Russian operations
- Nestlé suspended some brands and halted non-essential imports, exports, advertising, and capital investment after 2022
- Auchan presence
- About 230 supermarkets and hypermarkets across Russia
- Earlier cases
- Russia previously imposed temporary administration on assets linked to Danone SA and Carlsberg A/S
Sources
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