Kremlin Seizes Control: Nestlé, Auchan, and Lemana Pro Placed Under Temporary Management

MOSCOW — Russian President Vladimir Putin has signed a decree placing the local operations of Swiss food giant Nestlé and French retail chains Auchan and Lemana Pro (formerly Leroy Merlin) under "temporary management," marking a significant escalation in Moscow’s campaign against Western corporate assets.

The Kremlin explicitly linked the move to Western support for Ukrainian strikes on Russian civilian and economic infrastructure, framing the seizures as a defensive measure against "unfriendly" states.

The decree, signed on September 17, 2026, utilizes a legal mechanism introduced by Moscow in 2023 that allows the state to impose external administration on businesses originating from countries that have imposed sanctions on Russia.

While the decree stops short of outright nationalization, legal and economic analysts warn that "temporary management" has historically served as a precursor to the forced, discounted sale of these assets to domestic Russian buyers.

The targeted companies represent some of the most prominent Western brands that chose to maintain a presence in Russia following the 2022 invasion of Ukraine.

Nestlé, which has continued to supply basic food products, and Auchan, a major supermarket operator, have attempted to navigate the complex regulatory environment by scaling back non-essential operations while keeping core supply chains intact.

Lemana Pro, the rebranded Russian entity of the former Leroy Merlin DIY chain, had previously transferred operational control to local management in an effort to insulate itself from geopolitical fallout.

Kremlin spokesperson Dmitry Peskov defended the action, stating that the decision was directly tied to the origins of these corporations and the hostile actions of their home governments.

However, international trade experts view the timing and scope of the decree as a calculated geopolitical lever. By targeting essential consumer goods and home improvement retailers, Moscow is signaling its willingness to disrupt everyday market stability in response to Western military aid to Kyiv.

For the affected companies, the decree introduces profound operational and legal uncertainty.

While Auchan and Lemana Pro have issued statements claiming their Russian operations will continue as normal under the new administrative structure, the loss of corporate control raises immediate concerns regarding supply chain integrity, intellectual property rights, and the repatriation of profits.

Nestlé is reportedly weighing its legal and strategic options in consultation with the Swiss government.

This latest asset seizure underscores the deteriorating environment for foreign businesses attempting to maintain a foothold in Russia.

As the conflict enters a new phase, the Kremlin’s willingness to weaponize corporate governance demonstrates that no Western brand, regardless of its efforts to remain politically neutral or provide essential goods, is entirely immune to the economic fallout of the war.