Russia takes control of Nestle and Auchan assets: what it means
Russia places Nestle and Auchan assets under temporary administration. Here is what the move means, their Russian operations, employees, stores and what happens next.
Raja Awais Ali
9/18/20263 min read
Russia Takes Control of Nestle and Auchan Assets: What It Means
Russia has placed the local business of Swiss food giant Nestle under temporary administration, giving a Russian company control of its assets and raising the prospect of a long-term transfer or sale of the operation. The move, ordered by President Vladimir Putin, is the latest step for Moscow to increase pressure on foreign-owned companies since the full-scale invasion of Ukraine in 2022.
Nestle said on Friday it would take all necessary steps to protect its interests, while Auchan did not comment on the matter. The temporary administration of the Swiss group’s Russian operations does not necessarily constitute a transfer of ownership at this time, although it gives a state-appointed administrator control of the assets and could serve as a precursor to a potential sale.
According to a 2025 estimate by Moscow law firm NSP, more than $50 billion worth of private property has been nationalised in Russia since the start of the war, including assets of foreign companies, with the latest move fitting into a pattern of expanding limits of Russian businesses.
Nestle has operated in Russia since the 1990s and currently has six factories that produce coffee, pet food and infant formula. The company said it employs around 7,000 people in the country, where it makes up less than 1 percent of global sales.
Following the full-scale invasion of Ukraine in 2022, Nestle suspended many of its brands in the country and halted non-essential imports, exports, advertising and capital investments — although it continued to operate some key food production facilities.
Auchan entered the Russian market in 2002 and became one of the largest foreign retailers in the country. The company had 24,236 employees as of the end of 2025 and operated 229 stores in Russia as of the end of last year. In the first half of 2026, it generated 127 billion roubles ($1.5 billion) in revenue.
Unlike many of its Western counterparts, Auchan did not exit the Russian market following the 2022 invasion. As a result, the company has become one of the largest foreign retailers to maintain a presence in the country.
L.E.V. Management has been named temporary administrator of the affected assets. The Moscow-based company was founded in 2024 and has a low public profile, with Russian newspaper Kommersant previously reporting that a firm called KS Logistika had sought to place Nestle’s Russian assets under temporary administration with the Kremlin’s blessing.
It is not clear what prompted Russia to target Nestle in particular. Kremlin spokesman Dmitry Peskov said on Friday that the Swiss group and French retailer Auchan were both “based in unfriendly countries”, although he did not specifically name Switzerland or France. Russia has grown increasingly critical of Switzerland for its support of sanctions against Moscow after Bern adopted most EU measures.
According to Kommersant, Nestle’s reluctance to expand its operations in Russia and resume exports of products made in the country may have been a factor in the decision. While the temporary administration could put pressure on Nestle to reinvest in the Russian unit, it could also serve as a precursor to the company’s departure from the market.
Nestle’s potential exit would be governed by laws requiring foreign companies to sell their assets at a discount, pay exit taxes and follow other requirements. Previously, companies placed under temporary administration have been sold to Russian buyers at a fraction of their value.
The new rules were introduced in Russia in 2023 through a presidential decree outlining the procedure for the temporary administration of assets of organisations from so-called “unfriendly countries”. Under the measures, ownership of the business is not formally transferred at the initial stage, but day-to-day operations are placed under the control of a state-appointed administrator.
Moscow has already used the procedure against several foreign multinationals since the start of the war. Previously, Russian subsidiaries of food group Danone, Danish Carlsberg beer group, and Fortum, which owned the Russian Rosenergo network, were placed under temporary administration. In some cases, the companies were subsequently sold to Russian buyers, some of whom the Kremlin has been accused of supporting.
In addition to introducing the practice of temporary administration, Russia has also tightened restrictions on the sale of foreign-owned assets. As a result, foreign companies wishing to exit the Russian market must sell their shares at a discount, pay exit taxes and face other limitations.
For Nestle and Auchan, the direct impact of the decree is that their Russian operations will now be placed under the control of a temporary administrator. However, in the case of Nestle, the company is reviewing its options and will take steps to protect its rights, while Auchan has so far not responded to the move. What happens next will depend on whether Moscow proceeds with the transfer of full ownership to a Russian buyer in a potential long-term transaction.
Stay informed with the latest national and international news.
© 2026. All rights reserved.