Putin Seizes Nestle & Auchan Assets
Russian President Vladimir Putin signed a decree Thursday transferring the Russian assets of Swiss food giant Nestle and French supermarket chain Auchan to AO L.E.V. Menedzhment…a little-known Moscow company with just 15,000 rubles ($177) in capital and one employee.
Nestle operates 6 plants in Russia with 7,000+ workers; Auchan runs 230 stores employing 30,000+. Both companies say they are assessing the situation. The decree also covers Leroy Merlin’s former operations and FM Logistic subsidiaries.
Since 2022, Russia has systematically targeted foreign corporate assets…previous seizures include Danone and Carlsberg. Foreign exits now require a 60% discount plus a 35% exit tax, leaving sellers with roughly 5% of assessed value.
