Putin places Russian Nestle, Auchan assets under external administration

Key facts

• Russian President Vladimir Putin placed Russian subsidiaries of Nestle and Auchan under external administration via a decree.
• The Russian companies LEV Management will manage the affected Nestle and Auchan holdings.
• Nestle stated it is weighing all options to protect its rights following the decree.
• Nestle operates six production sites in Russia, generating about 2% of its group turnover.
• Auchan operates 230 stores in Russia with approximately 30,000 employees.

Russian President Vladimir Putin has placed the Russian subsidiaries of Swiss food giant Nestlé and French supermarket chain Auchan under external administration. A decree issued on Thursday stated that shares in Nestlé Russia and Nestlé Kuban, as well as French supermarket chain Auchan's Russian operations, would now be managed by the Russian firm LEV Management. Although Nestlé remains the owner of its subsidiaries, it cannot make decisions regarding these holdings for the time being. Russia has been using the instrument of temporary administration since 2023 to take control of foreign companies’ assets, often preceding state expropriation. In previous cases, assets have later been transferred to Kremlin-linked individuals or companies. Nestlé generates around 2% of its group turnover in Russia and operates six production sites there. Auchan operates 230 stores in Russia with approximately 30,000 employees. Nestlé has previously justified its continued operations by arguing it supplies essential goods.