·
·
Saturday, 19 September 2026dailybeirut.com
Economy
Russian authorities have seized the remaining operations and assets of Swiss food giant Nestlé and three French companies—Auchan, Leroy Merlin (now operating as Lemana Pro), and FM Logistic—under a presidential decree signed by Vladimir Putin.
Russian authorities have seized the remaining business operations and assets of Swiss food company Nestlé and three French corporate groups in the latest measure targeting Western firms following sanctions imposed on Moscow over its war against Ukraine.
Under a decree signed by Russian President Vladimir Putin, the Russian operations of Nestlé, French retail chain Auchan, and French home improvement and construction supplies group Lemana Pro—formerly known as Leroy Merlin—have been transferred to the company EL VI Management. The decree also covers the Russian branches of French logistics services group FM Logistic.
According to Novaya Gazeta Europe, EL VI Management was established in late 2025 and is headed by a general from Russia’s Ministry of Internal Affairs. The firm had no previously known commercial activity.
Over recent years, Moscow has imposed restrictions on Western companies seeking to exit the Russian market. These include requiring presidential approval to complete asset sales—or, in some cases, outright seizure of assets—after numerous Western firms moved to sell or isolate their Russian operations following the invasion of Ukraine.
Nestlé stated it is “assessing the situation and available options,” reaffirming its commitment to taking necessary steps to protect its rights and ensure continuity of commercial operations in the interest of all stakeholders—particularly its employees.
Jean-Philippe Bertschi, analyst at Swiss investment bank Vontobel, noted that the financial impact on Nestlé is likely limited given Russia’s small contribution to the group’s overall sales. He specified that Russia accounts for just over 1% of Nestlé’s sales, down from approximately 2% before the war. Bertschi added that the company has suspended “the vast majority of non-essential sales, imports, advertising, and capital investments,” while continuing to supply essential food products.
The French Mulliez family holds controlling stakes in both Auchan and Leroy Merlin. Each operates around 12 stores in Russia.
This action follows Moscow’s 2023 seizure of French company Danone’s Russian assets, which were subsequently sold to the nephew of Chechen leader Ramzan Kadyrov.
