The Russian assets of Switzerland-based food company Nestlé and France-based retail chain Auchan were placed under temporary administration by a decree signed by Vladimir Putin.
Kremlin spokesman Dmitry Peskov said the measure was linked to the stance of countries carrying out hostile actions against Russia. Peskov argued that these countries were the most actively involved in military activities against Russia.
Peskov did not directly mention France or Switzerland in his statement. Russia argues that Western countries supplying weapons to Ukraine are acting as parties to the conflict. Although Switzerland has not sent weapons to Ukraine, it has drawn Moscow’s reaction by imposing sanctions on Russia.
The companies’ assets in Russia
Nestlé’s assets in Russia and Auchan’s operations in the country were placed under the temporary control of L. E. V. Management, a company with no publicly available profile. Auchan has 230 stores and around 30,000 employees in Russia; the company also continues its online sales operations.
Nestlé, meanwhile, has six factories in Russia producing coffee, pet products and baby food, as well as around 7,000 employees. In 2021, the company generated approximately 2 billion Swiss francs, or $2.4 billion, in sales in Russia. This figure accounted for around 2% of Nestlé’s group sales.
The company has recently scaled back its operations in Russia. Sales, imports and exports outside the scope of essential needs, advertising activities and capital investments were suspended. Analysts estimate that Russia’s share of Nestlé’s total sales has fallen to around 1%.
Nestlé announced that it was reviewing the situation and would take all necessary steps to protect its rights. The company said it remained committed to ensuring the continuity of its operations, particularly in the interests of its employees, but did not provide details about its next steps.
Nestlé shares fell 2.4% after the decision. Analyst Jean-Philippe Bertschy said the financial impact could remain marginal because the company’s Russian operations account for a limited share of total sales. Bertschy nevertheless assessed that the development increased the risk of the company’s assets losing value or being sold under unfavorable conditions.
Moscow’s use of temporary administration
Russia has gradually expanded its control over foreign companies’ assets in the country since the war in Ukraine began in 2022. A decree signed by Putin in 2023 allows the assets of companies from countries Moscow describes as “unfriendly” to be placed under temporary administration.
The method has also been used to generate revenue through forced sales, exit taxes and discounted transfers as foreign companies leave Russia. According to a 2025 estimate by a law firm, the Russian state has seized more than $50 billion in private property since the start of the war, including the assets of foreign companies.
In previous cases, temporary administration resulted in some assets later being nationalized by the state or transferred to individuals and companies linked to the Kremlin. Peskov said that, for Nestlé and Auchan, only the temporary administration option was currently being considered and that no further step was under discussion.
The risk facing Nestlé
Nestlé had defended its presence in Russia on the grounds that it supplied essential food products. Following the temporary administration decision, the future of the company’s operations in Russia remains uncertain.
Analyst Jon Cox said the development was negative for Nestlé. Cox said the company could face the risk of losing its assets in Russia and the cash held in the country for an extended period, adding that any potential compensation was not expected to make up for the loss.
The Swiss government announced that it was concerned about the seizure of Nestlé’s assets and supported the company’s efforts to reverse the decision. Auchan did not issue any statement on the decision.
