Russian Asset Seizure
Russia Places Nestlé and Auchan Assets Under Temporary State Administration
Anonymous
Key Points
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The decree specifically covers Nestlé Russia and Nestlé Kuban, with shares held by Nestlé entities in Switzerland and Germany placed under L.E.V. Management; Nestlé technically remains the owner but temporarily loses independent decision-making authority over the holdings.
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Russia accounts for about 2% of Nestlé’s global revenue, and the company operates six Russian production facilities making coffee, confectionery, baby food and pet food.
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Nestlé has halted investment in Russia, stopped selling some brands—including KitKat and Nesquik—and said it did not intend to generate a profit there, while continuing to supply what it describes as essential food products.
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Russia established the temporary-administration framework in April 2023 for assets owned by companies from countries Moscow considers “unfriendly.” The mechanism has also been used against Western companies including Danone and Carlsberg.
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L.E.V. Management was registered in Moscow in 2024 with authorized capital of just 15,000 rubles and lists management consulting as its primary business activity. Its general director is identified as Andrei Vyacheslavovich Krayushkin.
President Vladimir Putin has placed the Russian assets of Nestlé and French supermarket chain Auchan under temporary administration, transferring control to a Moscow-based management firm. Market Screener reported that Nestlé is now considering its options to defend its rights in Russia following the Kremlin's move, which strips the Swiss food giant of independent decision-making authority over its Russian operations.
The decree also covers a small stake in the Russian retailer now operating as Lemana PRO, owned by Adeo, the parent company of Leroy Merlin. This marks Russia's expanding use of temporary administration to seize control of Western company assets that have remained in the country since the full-scale invasion of Ukraine began in 2022.
How Nestlé's Russian Business Still Operates
Nestlé continues running six production facilities in Russia that make coffee, confectionery, baby food, and pet food. The country generates about 2% of Nestlé's global revenue. Confectionery News noted that Nestlé is assessing its options following the government takeover of its Russian business.
The company has cut back significantly since 2022. It halted new investments, stopped selling brands like KitKat and Nesquik, and said it does not intend to make profits in Russia. However, Nestlé continues supplying what it describes as essential food products to Russian consumers.
Russia's Tool for Taking Over Western Assets
Moscow created the temporary-administration framework in April 2023 to seize assets owned by companies from countries it labels "unfriendly." Under this system, the original owner keeps the title but loses day-to-day control. Russian authorities have used this mechanism against other Western firms including Danone and Carlsberg.
L.E.V. Management, the firm now controlling Nestlé's Russian operations, was registered in Moscow in 2024 with just 15,000 rubles in authorized capital. The company lists management consulting as its main business activity. Its general director is identified as Andrei Vyacheslavovich Krayushkin.
Auchan's Continued Presence Despite Western Pressure
Auchan, the French supermarket chain, has also been placed under temporary administration alongside Nestlé. Like Nestlé, Auchan has remained operating in Russia even after the invasion of Ukraine, continuing to serve Russian consumers while facing pressure from the West.
The takeover follows a request from Russian firm KS Logistika. This latest action demonstrates Moscow's willingness to escalate control over foreign companies that have not fully withdrawn from the Russian market.
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