Russia seizes Nestlé and Auchan assets citing unfriendly nations

Russia has seized control of the local assets of Nestlé and French retail chain Auchan, placing them under temporary administration of the domestic firm L.E.V. Management, according to CNN. Kremlin spokesperson Dmitry Peskov told reporters that the two companies were European companies from unfriendly countries actively involved in hostilities against Russia, following a presidential decree that formalised the takeover.

Nestlé, which still operates six sites in Russia employing more than 7,000 people, said in a statement that it was committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees. The company's shares fell 2 per cent in Zurich following the announcement. Auchan, which operates 230 stores in Russia employing around 30,000 people, did not respond to requests for comment.

The seizures are part of a broader nationalisation drive that has intensified since Russia's full-scale invasion of Ukraine in 2022. A presidential decree at that time granted the government authority to place assets from unfriendly countries under temporary state control. These measures have accelerated in recent months as Western sanctions pressure on Moscow has increased.