Russian President Vladimir Putin has signed a decree placing 16 businesses linked to Nestlé, Auchan, and other Western firms under the control of a local management company.
Key facts
- •The decree affects 16 Russian companies linked to Western groups including Nestlé, Auchan, and FM Logistic.
- •Nestlé employs approximately 7,000 people and operates six factories within Russia.
- •Nestlé’s Russian business generates an estimated two billion Swiss francs in annual revenue, representing about 2% of the group's global sales.
- •L.E.V. Management was registered in October 2024 and has no publicly disclosed shareholders.
- •Previous instances of temporary administration in Russia have targeted companies including Carlsberg, Danone, and AB InBev.
Russian President Vladimir Putin signed a decree on Thursday placing 16 Russian companies linked to Western groups, including Nestlé and Auchan, under the temporary control of a firm called L.E.V. Management. The move, which affects businesses such as Nestlé Russia and the Lemana Pro DIY chain, is part of Moscow's ongoing response to Western sanctions. Kremlin spokesman Dmitry Peskov stated that the decision was influenced by the involvement of "unfriendly countries" in military operations against Russia.
By the numbers
Scope of the Administration
The decree does not formally change the ownership of the affected businesses, according to reports citing Russian legal experts. However, temporary administration has historically served as a precursor to the sale or transfer of foreign assets to Russian buyers. The companies impacted include Nestlé Russia, Nestlé Kuban, Auchan’s Russian subsidiary, two FM Logistic entities, and Le Monlid, which operates the Lemana Pro brand.
Corporate Response and Background
Nestlé, which has operated in Russia since 1995, stated it is assessing its options and remains committed to protecting its rights and supporting its 7,000 employees in the country. The company maintains six manufacturing sites in Russia and has previously suspended most non-essential sales and imports. Since the 2022 invasion of Ukraine, Russia has implemented increasingly stringent requirements for foreign companies attempting to exit the market, including the need for presidential approval for asset sales.
The Managing Entity
L.E.V. Management, the firm appointed to oversee the assets, was registered in Moscow in October 2024 and has no publicly disclosed shareholders. According to business newspaper Kommersant, the company reported no active operations in its 2025 accounts. Andrei Krayushkin was appointed as the firm's general director on September 10, one week before the decree was issued.
Timeline
- 1995Nestlé began operating businesses in Russia.
- 2022Russia launched a full-scale invasion of Ukraine, leading to an exodus of over 1,000 foreign firms.
- October 2024L.E.V. Management was registered in Moscow.
- September 10, 2025Andrei Krayushkin was appointed general director of L.E.V. Management.
- ThursdayPresident Vladimir Putin signed the decree placing the 16 companies under temporary administration.
Advertisement
This article was independently rewritten by ManyPress editorial AI from reporting originally published by Euronews Business, Evening Standard Business.
