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Russia seizes Nestlé and Auchan assets in largest foreign takeover since 2024

Russia seizes Nestlé and Auchan assets in largest foreign takeover since 2024

Money Moves

Putin places Western companies' Russian units under temporary state management

2 days ago: Nestlé and Auchan respond to seizure

Overview

Updated 1 hour ago

President Vladimir Putin signed a decree on September 17 placing the Russian subsidiaries of Nestlé, Auchan, and three other Western companies under the temporary management of a Moscow firm called L.E.V. Management. The move covers 16 Russian companies and is Moscow's biggest seizure of foreign corporate assets since 2024.

Neither Nestlé nor Auchan left Russia after the 2022 invasion, scaling back rather than exiting. The seizure extends a drive that Moscow law firm NSP estimates has captured more than $50 billion in private property since 2023, when Russia created a legal path for the state to take control of assets held by companies from countries it designates as 'unfriendly.'

Why it matters

Russia's seizure signals that Western companies still operating there face takeover, forcing exits at steep discounts or total loss.

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Key Indicators

$50B+
Estimated value of private property seized by Russian state
Moscow law firm NSP's 2025 estimate, including assets owned by foreign companies.
16
Russian companies placed under temporary management
Holdings across Nestlé, Auchan, Leroy Merlin, FM Logistic, and BATI Group transferred to L.E.V. Management.
7,000+
Nestlé employees in Russia
Nestlé operates six factories in Russia making coffee, pet food, and infant formula.
2%
Nestlé's Russian share of global sales
Roughly 2 billion Swiss francs ($2.4 billion) in annual revenue, per 2021 figures.
230
Auchan stores in Russia
Auchan opened its first Russian store in 2002 and built a network of supermarkets and hypermarkets.

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People Involved

Organizations Involved

Timeline

February 2022 September 2026

6 events Latest: 2 days ago
Tap a bar to jump to that date
  1. Nestlé and Auchan respond to seizure

    Latest Statement

    Nestlé says it is assessing options. Auchan says Russian outlets continue operating as usual and seeks clarification.

  2. Danone and Carlsberg forced to sell

    Money Moves

    Both companies' assets briefly returned, then required to sell to Kremlin-approved Russian buyers at steep discounts.

  3. Russia invades Ukraine

    Conflict

    Russia launches full-scale invasion; Western companies begin scaling back Russian operations.

Scenarios

1

Russia transfers seized assets to Kremlin-linked buyers

Likely Resolves by Sep 17, 2027

Discussed by: Reuters, Bloomberg, Meduza

Temporary management has consistently preceded formal transfer to Kremlin-approved Russian buyers, as with Danone and Carlsberg. Authorities could identify purchasers for Nestlé's six factories and Auchan's 230 stores, with sellers required to accept at least a 60% discount and pay a special exit tax.

2

Companies hold on as assets stay under state management

Possible Resolves by Sep 17, 2027

Discussed by: Financial analysts covering Nestlé and Auchan

If Nestlé and Auchan refuse to sell at the mandatory 60% discount, Russia could keep their assets under temporary management indefinitely. Both companies would likely write down or deconsolidate the Russian operations from financial statements, accepting the loss while preserving legal claims.

3

International arbitration awards compensation for seized assets

Unlikely Resolves by Sep 17, 2028

Discussed by: International law firms tracking Russia-related investor disputes

Nestlé and Auchan could pursue investor-state arbitration under bilateral investment treaties between Russia and Switzerland or France. Russia has historically ignored adverse awards, but a ruling could enable asset seizures abroad as compensation.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

July 2023

Danone and Carlsberg asset seizures (2023)

Russia placed the Russian units of French dairy maker Danone and Danish brewer Carlsberg under temporary state management. Both companies initially said they would fight the seizures, which came under the same 2023 law now applied to Nestlé and Auchan.

Then

Both companies had their assets briefly returned, then were required to sell to Kremlin-approved Russian buyers.

Now

Established the pattern that now applies to Nestlé and Auchan: temporary management leads to forced sales at steep discounts.

Why this matters now

This is the direct precedent for the September 2026 action, showing the likely trajectory for Nestlé and Auchan.

April 2023

Fortum asset seizure (2023)

Finnish utility Fortum was among the first foreign companies to lose control of its Russian assets under the temporary management law. Fortum had been seeking an exit from Russia since the 2022 invasion.

Then

Fortum's Russian assets were taken into state control, demonstrating that even companies attempting to leave were not exempt.

Now

Showed the seizure mechanism applies regardless of a company's intentions, foreshadowing the treatment of firms that stayed, like Nestlé and Auchan.

Why this matters now

Fortum demonstrated that no Western company is safe, whether it stayed in Russia or tried to leave.

Sources

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