Russia transferred Nestlé and Auchan assets to external management
Russian President Vladimir Putin signed a decree transferring the assets of several foreign companies in the country, such as Nestlé and Auchan, to "temporary management." As a result, the ability of foreign owners to independently manage these assets will be restricted.
Russia has transferred the assets of Nestlé and Auchan to external management
On September 17, the decree was published on Russia's official portal of legal information. According to Reuters, the assets in Russia belonging to the Swiss food concern Nestlé and the French retail group Auchan have been transferred to the temporary management of the company "L.E.V. Management".
According to DW, the decree covers shares and stakes in a total of 81 enterprises. The list also includes Nestlé's structures in Russia, subsidiaries of Auchan, as well as assets related to the French logistics companies FM Logistics and NG Concept.
In addition, certain shares in the company "Le Monlid", established in Russia by Leroy Merlin, were also placed under "temporary management".
In accordance with the new decree, the management of the assets was handed over to the company "L.E.V. Management".
Since 2023, Russia has been using a mechanism to transfer the assets of certain foreign companies into "temporary management". This mechanism was previously applied to the Russian assets of companies such as Danone and Carlsberg.
Reuters notes that Russia has tightened control over the assets of foreign companies after the start of the full-scale war against Ukraine. A decree signed in 2023 allowed Moscow to transfer the assets of companies from countries that Russia considers "unfriendly" into temporary management.
Nestlé has continued its operations in the Russian market, explaining this by the need to supply essential food products to the population. The company previously told Reuters that it had not received any communication from Russian official authorities regarding the transfer of its assets to temporary management.