Russia, through a decree issued by Vladimir Putin, has temporarily transferred control of 16 businesses related to Nestlé and several Western groups to an unknown company named L.E.V. Management. This action comes as tensions between Russia and Western countries have intensified, particularly due to sanctions imposed following Russia's invasion of Ukraine.
Continued Pressure on Western Assets
Under this decree, all shares and stocks belonging to the 16 Russian companies are now managed by L.E.V. Management. This company includes brands such as Nestlé Russia, Nestlé Kuban, and the Russian retail subsidiary Auchan. Dmitry Peskov, the Kremlin spokesman, acknowledged in a press conference that one of the influencing factors in this decision is the status of Western countries as "unfriendly countries" that play an active role in military operations against Russia.
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Economic Consequences and Company Reactions
This action, despite not officially changing the ownership of the businesses, could be a precursor to the sale or transfer of Western assets to Russian buyers. L.E.V. Management, registered in Moscow in October 2024, appears to have no active business operations yet, and its shareholders have not been publicly disclosed. Andrei Krayushkin has been appointed as the CEO of this company, and some sources have pointed out the similarity of his name to a senior official in the Russian Ministry of Internal Affairs.
Nestlé has stated that it is assessing the situation and its options, emphasizing its commitment to protecting the rights and continuing business activities in the interests of all stakeholders, especially its employees. Nestlé has about 7,000 employees and six factories in Russia and has temporarily halted most non-essential sales and imports.
Auchan also announced to Russian media that it has requested further explanations from officials regarding this decree. The company continues its operations and has about 30,000 employees and 230 stores in Russia.
This action also recalls the takeover of Danone's business in Russia in 2023, which was placed under the management of Yakub Zakriyev, a relative of the Chechen leader. This trend reflects Russia's ongoing efforts to control Western assets amid the current economic and political conditions.
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