Russia seizes assets of Nestle, French firms over West’s Ukraine support
WARSAW -
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Russia → seize → support
The Russian authorities have seized the businesses and assets of Swiss food giant Nestle and three French groups, a move the Kremlin defended on Sept 18 as a justified measure against firms representing “unfriendly countries” that back Ukraine.
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that → seize → Ukraine
A decree signed by President Vladimir Putin transferred the Russian operations of Nestle, French retailer Auchan and the former Leroy Merlin DIY chain, now known as Lemana Pro, to a company called LEV Management.
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decree → sign → company
The decree, issued late Sept 17, also covers the Russian subsidiaries of French logistics group FM Logistic.
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decree → issue → Logistic
France late Sept 18 called on the Russian authorities to “reverse this decision”.
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.
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Management → call → general
It had no known business activity.
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It → have → activity
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.
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trading → sell → goods
Others remained, citing concerns for their employees or citizen’s well-being, but often sharply scaling back their operations.
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Others → remain → operations
Russia has since made it difficult for firms to leave, requiring presidential authorisation for deals, or seizing the assets outright.
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firms → make → assets
In a short statement, Nestle 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”.
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it → say → stakeholders
“The company is assessing the situation and its options,” it added.
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it → assess → situation
Nestle has six factories and Russia and employs around 7,000 people, mainly for coffee, pet care, infant nutrition and confectionary products, a spokesperson said.
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spokesperson → have → coffee
Jean-Philippe Bertschy of the Swiss investment bank Vontobel said he expected the financial impact to Nestle would be small “given Russia’s limited contribution to group sales”.
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impact → say → sales
He said Russia now accounted for just over one percent of the group’s sales, down from around two percent before the Ukraine war.
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Russia → say → 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.
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he → suspend → items
“This practice has historically often been a precursor to a forced sale or effective expropriation of operations in the market,” said analysts at the brokerage Jeffries.
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analysts → force → Jeffries
“This was the case already for Danone and Carlsberg for example in 2023,” they wrote, estimating that a write-off of Nestle’s Russia business, including money it had not been able to repatriate, could cost the Swiss firm around one billion francs (S$1.5 billion).
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it → write → francs
Nestle shares dropped 2.6 per cent on the Zurich stock exchange on Sept 18.
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shares → drop → Sept
Auchan and Leroy Merlin are both controlled by France’s Mulliez family, which also owns the Decathlon sports retailer.
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which → control → retailer
Auchan’s Russian subsidiary said on Sept 18 that it had requested “clarifications” from the authorities over Putin’s decree.
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it → say → decree
The French foreign and economy ministries said in a joint statement late on Sept 17 that France “condemns” the move, and urged Moscow to go back on its decision.
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France → say → decision
Auchan’s subsidiary 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.
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subsidiary → include → 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.
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Russia → receive → agencies
The latest seizure echoes a string of other forced asset transfers, including Moscow’s 2023 takeover of Danone’s Russian business, which was later sold to a nephew of Chechen leader Ramzan Kadyrov.
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which → echo → Kadyrov
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