Russia Places Nestlé, Auchan Assets Under Administration

Russia has placed the Russian assets of Swiss food company Nestlé, French supermarket chain Auchan and a stake held by Adeo, the former parent of Leroy Merlin’s Russian business now operating as Lemana PRO, under temporary administration by Moscow-based L.E.V. Management in a decree signed by President Vladimir Putin. The measure followed a request from Russian firm KS Logistika and also affects entities linked to other foreign companies. Although the parent companies formally retain ownership, they are blocked from controlling their Russian subsidiaries; the Kremlin said the companies are based in “unfriendly” European countries that support Ukraine and alleged they participated in attacks on Russian civilian and economic infrastructure. The action raises concerns that the assets could be sold to Kremlin-aligned buyers at steep discounts, as happened with Russian businesses formerly owned by Danone and Carlsberg. Nestlé said it was assessing the situation and taking steps to protect its rights while maintaining operations, including at its six Russian factories, while Auchan and Leroy Merlin had not immediately commented; Nestlé shares fell about 2%, and Switzerland condemned the move as worrying and said it was seeking a reversal.