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Moscow, September 19, 2026 – Russia has intensified its campaign against Western companies, seizing control of Nestlé’s operations alongside three French firms in a sweeping move announced on September 18, 2026.
The decree, signed by President Vladimir Putin, transfers their Russian assets to LEV Management, a state linked entity established last year and reportedly led by a former interior ministry general.
Nestlé, the Swiss food giant, operates six factories in Russia and employs about 7,000 workers.
Its portfolio includes coffee, infant nutrition, pet care, and confectionery products.
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While Russia accounts for just over one percent of Nestlé’s global sales, the forced takeover represents a symbolic blow to one of the world’s largest consumer goods companies.
Nestlé has pledged to safeguard employee rights and maintain continuity, while exploring legal avenues to contest the seizure.
The move also targeted French retailers Auchan and Leroy Merlin, as well as logistics group FM Logistic.
Auchan runs approximately 240 stores across Russia, making it one of the largest foreign retailers still active in the country.
Leroy Merlin, rebranded locally as Lemana Pro, continues to operate DIY outlets now under Russian control.
FM Logistic’s subsidiaries were similarly absorbed, disrupting supply chains that had long supported Western consumer operations in Russia.
For Nestlé, the financial impact may be limited compared to its global scale, but the reputational risks are significant.
Analysts note that the company’s continued presence in Russia has drawn criticism since the war in Ukraine began, with humanitarian arguments such as providing essential food supplies clashing against mounting political and ethical concerns.
The seizures highlight the growing difficulty for Western firms to exit Russia.
Since 2023, divestments have required presidential approval, often delayed or denied.
Forced transfers to politically connected entities have become a hallmark of Moscow’s strategy, effectively closing the door to orderly exits and raising the specter of outright nationalization.
Economists warn that such expropriations further erode investor confidence, isolating Russia’s economy from Western capital and deepening reliance on domestic or non Western partners.
For Nestlé, the episode underscores the fragile balance between global business obligations and geopolitical realities.
As Moscow tightens its grip, the message is clear: Western companies still operating in Russia face escalating risks.
For Nestlé, the latest seizure is not just a financial setback but a stark reminder of the volatile intersection between commerce and geopolitics.
