The Kremlin has placed Russian operations of Swiss Nestle and French Auchan into temporary administration, following an order from President Putin. This action stems from a 2023 law allowing for control of businesses from “unfriendly countries.” Kremlin spokesman Dmitry Peskov noted that these companies are deemed to be “most actively involved in hostilities against our country.”
Previously, similar measures have led to forced sales of businesses at reduced prices. Nestle acknowledged the decree and is evaluating its implications, expressing commitment to protecting its rights and continuing operations. Auchan has not yet commented on the situation.
This decree also affects Russian affiliates of various logistics firms, all of which are now managed by a company named L.E.V. Management. Since Russia’s invasion of Ukraine in 2022, many Western businesses have ceased operations or written off their assets in the country, facing significant obstacles in selling their operations.
