Putin places Nestle and Auchan Russia units under temporary administration
The Kremlin has ordered the Russian businesses of Swiss-based food and beverage company Nestle and French retailer Auchan to be placed under temporary administration, a move that has previously led to Western businesses being sold to Russian owners at sharply reduced prices.
Under a decree issued late on Thursday by Russian President Vladimir Putin, the local assets of the two multinational companies were placed under what the Kremlin described as temporary control by another company. A 2023 law allows the Kremlin to place businesses from what it calls "unfriendly countries" under temporary administration.
In earlier cases involving French dairy company Danone and Danish brewer Carlsberg, businesses that were put under administration were later sold to new Russian owners. Kremlin spokesman Dmitry Peskov told reporters on Friday that the companies concerned are "European companies, companies from unfriendly countries" that are "most actively involved in hostilities against our country", as well as in Ukraine's strikes "on our civilian economic infrastructure". "These factors were taken into account, but so were other operational factors," Peskov said.
He added that "at the moment, we're taking about the introduction of external management. No other decisions have been made so far." Nestle, which is based in Vevey, Switzerland, said it "takes note" of the decree and "is assessing the situation". In a statement, the company said it "is committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees". Auchan representatives had no immediate comment.
The decree also affects affiliates of international logistics firm BATI Group, Le Monlid, which operates the Russian DIY chain Lemana Pro, formerly Leroy Merlin, and French logistics group FM Logistic. All the local entities were placed under the management of a company called LEV Management. Since Russia's full-scale invasion of Ukraine in 2022, some major Western companies have stopped operating in the country and written off their businesses, while others have reduced operations or continued to do business. The Kremlin has also imposed strict conditions on the disposal of local affiliates, including steep discounts, exit taxes and government approval.
Overall, the Kremlin's latest order brings Nestle, Auchan and several other local entities under temporary administration, while officials say no further decisions have yet been taken.
