Russia takes control of Nestlé and Auchan businesses and links move to European support for Ukraine

Russia has placed the local businesses of Nestlé and French retailer Auchan under temporary state administration, with the Kremlin explicitly linking the decision to the companies’ European origins and their governments’ policies towards Moscow.

The move gives Russian authorities control over substantial Western-owned commercial operations.

Nestlé has six factories and approximately 7,000 employees in Russia, while Auchan operates around 230 stores employing about 30,000 people.

Reuters describes the intervention as Russia’s most significant action against Western corporate assets since the state takeovers involving Danone and Carlsberg in 2023.

Kremlin cites ‘unfriendly’ countries

The Kremlin said the fact that the companies originated in countries Russia considers “unfriendly” contributed to the decision.

Both Switzerland, where Nestlé is headquartered, and France, Auchan’s home country, have supported sanctions against Russia following its invasion of Ukraine.

The companies had continued substantial operations in Russia even as many other Western businesses withdrew from the country.

Their continued presence has not prevented their assets from becoming part of the wider confrontation between Moscow and European governments.

Temporary administration does not automatically amount to permanent confiscation.

However, previous Russian interventions involving Western businesses have subsequently resulted in assets being transferred or effectively expropriated.

More than $50bn seized since invasion

A 2025 estimate cited by Reuters put the value of private property seized by the Russian state since the invasion of Ukraine at more than $50 billion.

Moscow has argued that measures involving Western companies are justified responses to sanctions and Western actions against Russian assets abroad.

Western governments and affected companies have challenged previous Russian seizures and forced transfers.

The Nestlé and Auchan interventions extend that confrontation to two companies that continued supplying consumer goods inside Russia throughout the war.

Their businesses remain under temporary administration rather than formally confiscated.

But Russia is now openly connecting control over Western-owned commercial assets with the geopolitical policies of the countries those companies come from.

Sources

• Reuters – Russia says Nestlé and Auchan asset controls are payback for hostile European actions
• Reuters – What is known about Russia’s temporary administration of Nestlé and Auchan assets