Putin Places Nestle and Auchan's Russian Assets Under Temporary Administration

Russian President Vladimir Putin has ordered the temporary administration of the Russian assets of Swiss food group Nestle and French supermarket Auchan. This move comes amid tightened control over foreign assets in response to the war in Ukraine, allowing Russia to manage assets from 'unfriendly' countries.

Russian President Vladimir Putin has escalated his administration's oversight of foreign enterprises, placing the Russian assets of Swiss food conglomerate Nestle and French supermarket chain Auchan under temporary administration. The decree underscores Russia's tightening grip on foreign-controlled assets amid ongoing geopolitical tensions.

The presidential directive, as outlined in the newly published decree, mandates the transfer of Nestle's and Auchan's Russian holdings to L.E.V. Management for interim custodianship. This development follows a petition by KS Logistika, a company allegedly representing third-party stakeholders, urging action against Nestle's assets in Russia.

Nestle, while confirming continued operation within Russia, stresses compliance with local regulations amid the imposed administrative oversight. The move, however, reflects a broader strategy by Moscow to exert influence over businesses from nations it considers 'unfriendly,' leveraging mechanisms previously utilized to control subsidiaries of Danone and Carlsberg in Russia.