Russian authorities have seized the businesses and assets of Swiss food giant Nestlé and three French groups, a move the Kremlin defended Friday, September 18, as a justified measure against firms representing "unfriendly countries" that back Ukraine.

A decree signed by President Vladimir Putin and issued late Thursday, September 17, transferred the Russian operations of Nestlé, French retailer Auchan and the former Leroy Merlin DIY chain, now known as Lemana Pro, to a company called LEV Management. The decree, issued late Thursday, also covers the Russian subsidiaries of French logistics group FM Logistic.

Investigative outlet Novaya Gazeta Europe reported that LEV Management was created only at the end of 2025 and is headed by a Russian interior ministry general. It had no known business activity.

It was the latest move by Russia against Western firms in response to a barrage of sanctions over its war against Ukraine, now in its fifth year.

Most Western companies quickly sold their Russian operations and holdings after the Ukraine invasion, or at least isolated them, as sanctions have made trading in most goods difficult. Russia has since made it difficult for firms to leave, requiring presidential authorization for deals or seizing the assets outright.

In a short statement, Nestlé said 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." It added "the company is assessing the situation and its options," without providing details of its residual Russian operations. Nestlé has six factories and Russia and employs around 7,000 people, mainly for coffee, pet care, infant nutrition and confectionary products, a spokesperson said.

Jean-Philippe Bertschy of the Swiss investment bank Vontobel said he expected the financial impact to Nestlé would be small "given Russia's limited contribution to group sales." He said Russia now accounted for just over 1% of the group's sales, down from around 2% before the Ukraine war. It has suspended "the vast majority of sales, non-essential imports, advertising and capital investment," he said, while continuing to supply essential food items.

Auchan and Leroy Merlin are both controlled by France's Mulliez family, and each has around a dozen outlets in Russia. Auchan's Russian subsidiary said Friday that it had requested "clarifications" from the authorities over Putin's decree. The food and consumer goods group is one of Russia's main retailers, with 241 stores in the country, including 62 hypermarkets, and over 33,000 employees according to its website. "Once the corresponding information has been received, we will be able to provide more detailed comments," Auchan Retail Russia said a statement to Russian news agencies.

The French foreign and economy ministries said in a joint statement late Friday that France "condemns" the move, and urged Moscow to go back on its decision.

The latest seizure echoes Moscow's 2023 takeover of Danone's Russian business, which was later sold to a nephew of Chechen leader Ramzan Kadyrov.