Switzerland Condemns Kremlin's Takeover of Nestle in Russia

WHO:

Bloomberg Markets - Vladimir Putin, President of Russia

CNBC - Nestle SA, a Swiss food giant

CNBC - Auchan, a French retailer

CNBC - Lemana Pro, the former Russian arm of French DIY retailer Leroy Merlin

WHAT:

CNN - Nestlé's sales in Russia accounted for 2% of group sales in 2021, equal to around 2 billion Swiss francs ($2.4 billion).

CNN - Auchan operates 230 physical stores and has an online presence in Russia, employing 30,000 people.

Bloomberg Markets - Putin ordered the Russian assets of Nestle SA to be placed under temporary external administration.

CNBC - Nestle is weighing its options following the Kremlin's move to seize its Russian assets.

CNBC - Shares of Nestle traded 2.2% lower following the announcement.

CNBC - The decree also targets the Russian assets of Auchan and Lemana Pro, which are set to be transferred to a shell company called L.E.V. Management.

WHERE:

Bloomberg Markets - Russia

CNBC - Naberezhnye Chelny, Russia, where Nestle products are sold

WHEN:

CNN - Elections for the State Duma are expected to take place this weekend, marking the first nationwide parliamentary elections since the 2022 invasion of Ukraine.

CNBC - The Russian presidential decree was published on the country's official legal portal on a Thursday.

WHY:

CNBC - The seizure is seen as part of a renewed push against Western businesses operating in Russia amid the Ukraine war.

HOW:

Bloomberg Markets - Putin's order involves transferring stakes in local companies owned by Nestle to temporary administration.

(UPDATED September 18, 2026 19:00 UTC)

Nestlé's sales in Russia represented about 2% of the company's total sales in 2021, amounting to roughly 2 billion Swiss francs, or $2.4 billion. Auchan, which operates 230 physical stores and has a significant online presence in Russia, employs around 30,000 people. This weekend, elections for the State Duma are set to occur, marking the first nationwide parliamentary elections since the 2022 invasion of Ukraine.

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(UPDATED September 18, 2026 16:01 UTC)

In a significant move, President Putin has ordered the Russian assets of Nestle SA to be placed under temporary external administration, a decision that also affects the assets of Auchan and Lemana Pro, which will be transferred to a shell company called L.E.V. Management. Following this announcement, shares of Nestle dropped by 2.2% as the company weighs its options in response to the Kremlin's actions. This decree, published on Russia's official legal portal, is viewed as part of a renewed effort against Western businesses operating in the country amid the ongoing Ukraine war.