Archive · 18 Sep 2026
Russia Seizes Nestlé and French Firms’ Assets Amid Ukraine Tensions
Russia has taken control of the Russian businesses of Nestlé and three French companies.
The companies include Auchan, Lemana Pro, and FM Logistic.
Russia says these actions respond to Western sanctions and other measures linked to support for Ukraine.
Nestlé has six factories in Russia and about 7,000 workers there.
Russia is now a small part of Nestlé’s worldwide business.
Nestlé had already stopped most sales, advertising, and new investment in Russia.
Analysts say losing the business could cost Nestlé about $1.2 billion.
Nestlé and Auchan are reviewing what the government’s decision means for them.
A decree transferred Russian operations of Nestlé and three French groups to LEV Management.
Nestlé operates six Russian factories and employs about 7,000 people.
Russia accounts for just over 1% of Nestlé’s global sales, down from about 2% before the war.
Jefferies estimated that writing off Nestlé’s Russian business could cost roughly $1.2 billion.
The transfers come amid Russia’s broader restrictions on Western companies following the invasion of Ukraine.
- Who
- Russian authorities, Nestlé, Auchan, Lemana Pro, and FM Logistic.
- What
- A presidential decree transferred the companies’ Russian operations and assets to LEV Management.
- When
- The move followed Russia’s invasion of Ukraine in February 2022 and was announced in the latest reported asset seizure.
- Where
- The affected operations are in Russia.
- Why
- The Kremlin framed the seizures as retaliation for Western sanctions and actions by countries supporting Ukraine.
Russian authorities’ position
Companies’ position
Reason for the asset transfers
Russian authorities’ position
The Kremlin presented the measures as retaliation against Western sanctions and actions by countries supporting Ukraine.
Companies’ position
The companies have reduced their Russian activities or sought clarification while emphasizing employee responsibilities and continued essential supplies.
Nestlé’s continued presence
Russian authorities’ position
Russia’s broader policy has restricted foreign companies’ ability to leave and allowed authorities to take control of some assets.
Companies’ position
Nestlé says it suspended most sales, advertising, non-essential imports, and capital investment, while continuing to supply essential food products.
Response to the decree
Russian authorities’ position
The decree placed the companies’ Russian operations under LEV Management.
Companies’ position
Nestlé said it was assessing the situation and options to protect its rights and business continuity; Auchan said it had requested clarification.
- Nestlé’s Russian footprint
- Six factories and approximately 7,000 employees.
- Share of global sales
- Just over 1% currently, compared with around 2% before the Ukraine war.
- Estimated financial impact
- Jefferies estimated a potential loss of about 1 billion Swiss francs, or $1.2 billion.
- Transferred operations
- Nestlé, Auchan, Lemana Pro, and FM Logistic.
- New controlling firm
- LEV Management.
- Nestlé’s post-invasion measures
- The company suspended most sales, non-essential imports, advertising, and capital investment while continuing essential food supplies.
- Nestlé share reaction
- Shares fell about 2.3% on the Zurich stock exchange after the seizure news.
- Auchan’s Russian operations
- 241 stores, including 62 hypermarkets, and more than 33,000 employees, according to its website.