In a bold move of economic pressure, Vladimir Putin's government has placed the Russian subsidiaries of global giants Nestlé, Auchan, and Leroy Merlin under 'provisional administration.' This strategic shift transfers operational control to an entity linked to the Ministry of Internal Affairs, marking a critical escalation in the conflict between Moscow and companies from 'unfriendly' nations.

Economic Warfare: The New Russian Strategy

🔍 Understanding 'Provisional Administration'

To provide context for international readers: this is not a formal immediate nationalization, but a de facto expropriation. Under these decrees, the Russian state appoints an administrator who assumes all the legal powers of the owner. This allows the government to manage the business and potentially force a sale to local investors at heavily discounted prices, effectively stripping the original owners of their assets.

President Vladimir Putin has officially authorized the intervention of operations for the Swiss giant Nestlé and the French firms Auchan and Leroy Merlin. Control has been transferred to L.E.W. Management, a company led by Major General Andrej Krajuschkin, who maintains direct ties to the Russian Ministry of Internal Affairs.

The Scale of the Impact

Company Presence in Russia Current Status
Nestlé 6 plants / 7,000 employees Revenue of 1.7 billion CHF (2021). Currently evaluating legal actions.
Auchan Over 200 supermarkets Had previously rejected buyout offers from Gazprombank.
Leroy Merlin Previous sale to UAE Included in the decree despite operating as "Lemana Pro".
⚠️ Financial Warning

This is not an isolated event. Danone already faced losses of 1.2 billion EUR in similar processes. Following this announcement, Nestlé's shares reacted with a 2% drop.

🌐 Global Context

These measures stem from decrees issued in April 2023, designed to penalize countries that Moscow deems "unfriendly" due to sanctions imposed after the conflict in Ukraine.

Source: Frankfurter Allgemeine Zeitung