Kremlin takes control of Auchan, Nestle and former Leroy Merlin assets

Under the decree, the companies’ Russian assets are being placed under the temporary management of JSC L.E.V. Management. The same company is also taking over management of the assets of FM Logistics and Bati Logistics, as well as Le Monlid LLC, which is linked to the chain that previously operated under the Leroy Merlin brand.

Formally, the measure imposes temporary management rather than the permanent confiscation of ownership rights. However, the mechanism effectively deprives the owners of the ability to independently control their Russian assets.

L.E.V. Management, which has been given control of the assets, was registered in Russia in October 2024. Its CEO is Andrey Krayushkin, while information about the company’s ultimate owners has not been publicly disclosed.

Nestle has operated in the Russian market since the 1990s and has several production facilities there. Auchan also continued operating in Russia after the start of the full-scale war against Ukraine.

Leroy Merlin previously transferred control of its Russian business to local management, after which the chain was renamed Lemana PRO. It continued operating in Russia under the new brand.

Russian authorities have repeatedly placed foreign companies’ assets under so-called temporary management in recent years. Moscow began making active use of the mechanism after Russia’s full-scale invasion of Ukraine and the withdrawal of some Western businesses from the Russian market.