Kremlin Seizes Western Businesses in Russia

Kremlin orders seizure of Nestle and Auchan businesses in Russia, signaling escalating tensions with Western companies.

September 18, 2026 One Min Read

POLICY WIRE — Frankfurt, Germany — The Kremlin has ordered the temporary administration of the Russian operations of Swiss food giant Nestle and French retailer Auchan, marking a significant escalation in its efforts to seize Western assets within the country.

The move follows a 2023 law that allows the Russian government to place businesses from “unfriendly countries” under temporary control. This procedure has previously led to the forced sale of Western firms to Russian entities at significantly reduced prices. The decree, issued by President Vladimir Putin, places the local assets of both companies under the management of a state-backed firm called L.E.V. Management.

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Kremlin spokesman Dmitry Peskov stated that the decision was based on the companies’ involvement in hostilities against our country and their role in Ukraine’s attacks on Russian infrastructure. Nestle and Auchan have yet to issue detailed responses, but Nestle said it is assessing the situation and committed to protecting its rights and business continuity.

Reporting by Policy-Wire (PW)

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