Putin Moves Nestle and Auchan's Russian Operations Under Temporary State Control
Overview of State Control Over Foreign-Owned Assets in Russia
MOSCOW, Sept 17 (Reuters) - Russian President Vladimir Putin has ordered the Russian assets of Swiss food group Nestle and French supermarket group Auchan to be placed under temporary administration, according to a presidential decree published on Thursday.
Details of the Presidential Decree
The decree shows Nestle's and Auchan's Russian assets have been transferred to the temporary management of L.E.V. Management.
Background on the Request for Temporary Administration
Earlier, the Kommersant newspaper reported that a company known as KS Logistika had asked Putin to place Nestle's assets under temporary administration.
Scope of the Request and Potential Ownership Changes
Kommersant, quoting a source familiar with the matter, reported that the request covered five Nestle-owned entities in Russia and could, in theory, result in a change of ownership.
Nestle's Response to the Developments
Nestle told Reuters it had not been contacted by Russian authorities about the request. The company said it continued to operate its offices and factories in Russia while complying with all regulatory requirements.
Information About KS Logistika
KS Logistika reported revenue of 1.6 million roubles ($18,735) in 2025 and is believed to represent third-party interests, the newspaper reported, without elaborating.
Reuters has not been able to independently verify this information.
Context: Russia's Tightening Control Over Foreign Assets
Russia has tightened control over foreign-owned assets since the start of the war in Ukraine in 2022. Under a decree signed by Putin in 2023, Moscow has the power to place assets from countries it deems "unfriendly" under temporary administration.
Previous Cases of State Control
The mechanism has previously been used to take control of the Russian subsidiaries of companies including Danone and Carlsberg. Nestle has continued operating in Russia, arguing that as a food producer, it supplies essential goods.
Reasons Behind the Request
According to Kommersant's source, the request stems from Nestle's decision not to expand production capacity in Russia and to halt exports of products made at its Russian factories.
Additional Information
($1 = 85.4000 roubles)
(Reporting by Anton Kolodyazhnyy; Editing by Joe Bavier, Rod Nickel and Ron Popeski)