Russia seizes assets of Nestle, French firms

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MOSCOW: Russia seizes assets of Nestle in response to Western sanctions over its war against Ukraine. 

Russian authorities have targeted the residual businesses and assets of Swiss food giant Nestle and three French groups under a decree signed by President Vladimir Putin.

The decree transfers the Russian operations of Nestle, retailer Auchan, the former Leroy Merlin DIY chain known as Lemana Pro, and logistics group FM Logistic to a company called LEV Management.

Investigative outlets reported that LEV Management was created at the end of 2025 and is headed by a Russian interior ministry general with no known business activity.

While most Western companies quickly sold or isolated their Russian operations after the Ukraine invasion, Moscow has since made it increasingly difficult for firms to leave by requiring presidential authorization or outright seizing assets.

This aggressive action echoes Moscow's previous 2023 takeover of Danone’s Russian business.

Nestle stated it is currently assessing the situation and its options to protect its rights and ensure business continuity for its employees.

Analysts point out that the financial impact on Nestle will remain small, as Russia now accounts for just over one percent of group sales after suspending non-essential activities.