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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's seizure drive widens to Metro while Swiss officials seek Nestlé relief

September 27th, 2026: Swiss officials help Nestlé seek return of Russian assets

Overview

Updated Sep 29

Putin's September 17 decree put the Russian units of Nestlé, Auchan, and three other Western groups under L.E.V. Management, a Moscow firm run by a former police major general. On September 28, the Kremlin added German retailer Metro.

The seizure drive has captured more than $50 billion in private property since 2023, per Moscow law firm NSP. Nestlé and Auchan stayed in Russia after the 2022 invasion, scaling back rather than exiting. Both say operations continue under the temporary managers; Swiss officials told NZZ they are helping Nestlé through diplomatic channels.

Why it matters

Russia's seizure drive now reaches nearly every Western company still in the country, 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
Companies seized under the September 17 decree
Holdings across Nestlé, Auchan, Leroy Merlin, FM Logistic, and BATI Group transferred to L.E.V. Management. German retailer Metro was seized separately on September 28.
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 group sales in 2021
The last year Nestlé reported the figure; about 2 billion Swiss francs ($2.4 billion). Reuters now estimates Russia accounts for about 1% of sales.
230
Auchan stores in Russia
Auchan opened its first Russian store in 2002 and built a network across 100 cities, employing about 30,000 people.
$7.14B
Value of assets under L.E.V. Management
Kommersant's estimate, about 600 billion rubles, for the 16 companies seized under the September 17 decree.

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People Involved

Vladimir Putin
Vladimir Putin
President of Russia
Signed the September 17 decree placing foreign assets under temporary management
 Andrey Krayushkin
Andrey Krayushkin
Chief executive of L.E.V. Management
Confirmed head of L.E.V. Management; pledged to keep seized stores operating
 Dmitry Peskov
Dmitry Peskov
Kremlin spokesperson
Defended the seizures publicly

Organizations Involved

L.E.V. Management (AO L.E.V. Menedzhment)
L.E.V. Management (AO L.E.V. Menedzhment)
Russian asset management company
Temporary manager of seized foreign assets

Moscow-based firm registered in October 2024 with charter capital of 15,000 rubles (about $177) and a single employee.
Nestlé
Nestlé
Swiss food and beverage company
Russian assets seized under temporary management; Swiss officials seeking diplomatic relief

World's largest food and beverage company; operates six factories in Russia with more than 7,000 employees.
Auchan
Auchan
French retail group
Russian assets seized under temporary management

French retail group operating 230 supermarkets and hypermarkets in Russia; first store opened in 2002.

Timeline

February 2022 September 2026

8 events Latest: September 27th, 2026 · 1 week ago
Tap a bar to jump to that date

  1. Swiss officials help Nestlé seek return of Russian assets

    Latest Diplomacy

    Switzerland's State Secretariat for Economic Affairs and Federal Department of Foreign Affairs told NZZ they are helping Nestlé through diplomatic channels to reverse the temporary administration.

  2. L.E.V. Management chief vows to keep seized Auchan stores running

    Statement

    Police Major General Andrei Krayushkin, who heads L.E.V. Management, ordered Auchan's Russian management to keep stores and distribution centers operating and pledged to protect them from drone attacks.

  3. Nestlé and Auchan respond to seizure

    Statement

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

  4. Putin signs decree seizing Nestlé, Auchan, Leroy Merlin assets

    Legal

    Decree transfers 16 Russian companies across five Western groups to L.E.V. Management, a Moscow firm registered in 2024.

  5. 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.

  6. Danone and Carlsberg units seized

    Legal

    Russia places local units of French dairy maker Danone and Danish brewer Carlsberg under temporary management. Finnish utility Fortum was seized separately in April 2023.

  7. Russia creates temporary management mechanism

    Legal

    Russia issues Decree 302, allowing the state to take temporary control of assets owned by companies from 'unfriendly' countries.

  8. 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.

4

Russia expands the seizure drive to more Western companies

Likely Resolves by End of 2026

Discussed by: Reuters, Moscow Times, France 24

The September 28 seizure of German retailer Metro, eleven days after the Nestlé-Auchan decree, points to more takeovers. Russian authorities have seized assets of at least 30 foreign companies since February 2022, and the Kremlin shows no sign of stopping the temporary-management list.

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

(18)
+12
Reuters CNN Business France 24 SWI swissinfo (Bloomberg) Meduza FoodNavigator The Independent CIJ.World EUBizNews The Moscow Times EADaily Swiss Observer Noerr Meduza France 24 FoodNavigator Meduza The Moscow Times