The Kremlin has ordered the Russian businesses of Swiss food and beverage company Nestle and French retailer Auchan placed under temporary administration, a procedure that has previously led to the forced sale of Western businesses to Russian owners at knockdown prices. The local assets of the two multinationals were placed under what the Kremlin calls temporary control by another company under an order issued late Thursday by Russian President Vladimir Putin. A 2023 law allows the Kremlin to place businesses from "unfriendly countries" under temporary administration; in the cases of French dairy concern Danone and Danish brewer Carlsberg, the businesses placed under administration were later sold to new Russian owners. Kremlin spokesman Dmitry Peskov said Friday the companies are "European companies, companies from unfriendly countries" that are "most actively involved in hostilities against our country," adding that "at the moment, we're talking about the introduction of external management" and that no other decisions have been made so far. Nestle, based in Vevey, Switzerland, said it "takes note" of the decree and is assessing the situation, while Auchan representatives had no immediate comment. The decree also affects affiliates of international logistics firm BATI Group, Le Monlid, which operates the Russian D.I.Y. chain Lemana Pro, formerly Leroy Merlin, and French logistics group FM Logistic, with all the local entities placed under the management of a company called L.E.V. Management.
