Putin transfers Russian assets of three major Western companies to external management
Russian President Vladimir Putin has transferred the Russian assets of French retailer Auchan and Swiss Nestlé to temporary management. The decree also affects Le Monlid, the company managing the former Leroy Merlin network in Russia, now operating under the Lemanapro brand.
The corresponding decree came into force on September 17. The company L.Ye.V. Management has been appointed as temporary asset manager.
The document covers virtually 100% of shares in Auchan's Russian structures, as well as in Nestlé Russia and Nestlé Kuban companies. To L.Ye.V. Management, 99.993% of Le Monlid owned by Scenari Holding and 0.007% held by French Groupe Adeo have also been transferred.
The temporary management mechanism does not entail automatic change of asset ownership, yet foreign companies lose the ability to effectively manage their business in Russia. Russian authorities have used this scheme since 2023 for assets of companies from so-called "unfriendly" countries.
Auchan and Nestlé did not leave the Russian market after the start of the full-scale war. At the same time, Nestlé significantly scaled down its operations there. In 2022, the company halted new investments and advertising, stopped non-essential imports and exports, and also suspended sales and production of a number of well-known brands, including KitKat and Nesquik.
At that time, Nestlé stated that its operations in Russia would focus on essential goods, primarily infant and specialized medical nutrition, and would not aim at profit. Later the company confirmed that it had reduced the product range in Russia but continued operating in the market.
A different situation unfolded with Leroy Merlin. Its owner, Groupe Adeo, announced in March 2023 its intention to transfer control of the Russian business to local management. By the end of that year, the operational control transfer was completed, and the chain subsequently began operating under the name Lemanapro.
Thus, the new decree affects both companies that continued operating in Russia after 2022, as well as assets of the former Leroy Merlin Russian business, control of which the French group had previously transferred to local management.
