Russia is entering a new phase of managing the economic conflict with the West.
By presidential decree signed on September 17, Vladimir Putin placed significant Russian assets of Auchan, Nestlé, Lemana PRO, and FM Logistic under temporary administration, transferring their operational control to the Russian company L.E.V. Management.
These are enterprises with hundreds of retail stores, manufacturing plants, logistics hubs, and an estimated total value of at least 600 billion rubles (7.1 billion dollars).
The move carries far greater significance than a simple managerial adjustment.
Moscow sends a message that, in an environment of sanctions, freezes of Russian assets abroad, and open geopolitical confrontation, it no longer considers it a given that Western conglomerates can maintain complete control over strategic business operations inside Russia regardless of the policies of their home nations.
The Kremlin was unambiguous regarding its rationale.
Kremlin spokesperson Dmitry Peskov stated that when making the decision, it was taken into account that these specific enterprises are linked to countries that Russia characterizes as «unfriendly».
He also maintained that several of these states actively participate in supporting Ukraine, including, according to the Russian position, actions connected to Ukrainian strikes against Russian economic infrastructure.
The crucial element is that the Kremlin did not announce nationalization or a definitive transfer of ownership.
Dmitry Peskov emphasized that «no other decision» has been taken and that at the current stage this concerns exclusively external, temporary administration.
Legally, this means that foreign owners do not automatically forfeit title to their shares or equity holdings.
They do lose, however, in practical terms, a large part of their capacity to dictate the daily operations of their Russian enterprises.
A business empire worth hundreds of billions
The scale of the assets explains why the decision has prompted such extensive debate.
Auchan possesses approximately 230 retail stores across roughly 100 cities in Russia.
In the first half of 2026 alone, its revenue reached approximately 127 billion rubles.
The firm's presence in the Russian market is neither peripheral nor symbolic; it constitutes one of the largest foreign players in retail, employing tens of thousands of workers.
Even larger is the economic footprint of Lemana PRO, the retail chain that succeeded Leroy Merlin.
It operates 112 stores across 66 cities and, according to data from Infoline cited by Kommersant, controls approximately 27.2% of the Russian DIY market (home construction, renovation, and improvement products).
Its turnover in 2025 stood at approximately 550 billion rubles.
The case of Nestlé is distinct, because it does not involve solely commercial brands and distribution, but also actual industrial manufacturing inside Russia.
The Swiss conglomerate operates six production facilities in the country, manufacturing coffee, confectionery items, baby food, and pet food.
Its product portfolio includes brand names such as Nescafé, Maggi, NAN, and Purina.
Nestlé employs approximately 7,000 individuals in Russia.
The same decree package also encompasses operations of FM Logistic.
The company reports that it manages 25 logistics platforms with a total surface area of approximately 865,000 square meters and executes around 830,000 transport operations per year.
FM Logistic Vostok posted revenues of approximately 30.13 billion rubles in 2024 and net profits exceeding 2.2 billion rubles.
In aggregate, Kommersant estimates the value of the affected enterprises at no less than 600 billion rubles.
Lemana PRO alone is evaluated by analysts at 300 to 350 billion rubles, while Auchan is valued at 60 to 70 billion rubles.
What is the mysterious L.E.V. Management
Equally intriguing alongside the scale of the enterprises is the identity of the new temporary administrator.
L.E.V. Management was founded in Moscow in October 2024.
Its shareholders are not publicly disclosed and, according to published corporate registry data, until recently it had displayed no noticeable commercial activity commensurate with the sheer size of the companies it is now called upon to run.
Just one week before the presidential decree, on September 10, 2026, its leadership changed as well.
Andrey Krayushkin took over as chief executive officer, replacing Larisa Rogacheva.
The decision to hand over assets of such magnitude to the company naturally sparked questions among journalists.
When asked why L.E.V. Management was specifically selected, Dmitry Peskov refrained from providing exhaustive details.
He confined himself to declaring that it was the company that «best met the necessary parameters».
For the Russian government, nonetheless, the core objective of the temporary administration regime is the uninterrupted functioning of the businesses and the safeguarding of their assets.
Lemana PRO announced that its retail stores and logistics facilities continued operating normally following the promulgation of the decree.
The response of Nestlé
Nestlé reacted prudently.
It announced that it is assessing the situation and its available options, adding that it will take the necessary measures to protect its rights and maintain business continuity, particularly for the benefit of its employees.
The fact that these enterprises continue operating is of prime importance for Moscow as well.
Russian policy in recent years is not confined to pushing Western firms out of the marketplace.
In numerous instances, the authorities seek to preserve factories, employment, distribution networks, and supply chains within the domestic territory, even as ownership control shifts.
The mechanism rests on a framework enacted in 2023 that permits the temporary administration of company assets belonging to entities from states designated by Russia as unfriendly.
This tool had previously been applied to corporations such as Danone, Carlsberg, Fortum, and other Western conglomerates.
From the vantage point of Moscow, this policy is framed as part of a wider retaliation to the freeze of Russian state and private assets abroad and Western sanctions.
The Russian government has repeatedly described these restrictions as economic warfare warranting counter-measures.
Western governments, conversely, regard the sanctions as a reaction to the Russian military campaign in Ukraine.
What may follow
The overarching question is whether this temporary administration will indeed remain temporary.
Sergey Alimirzoyev, senior partner at Alimirzoev & Trofimov, points out that the appointment of a temporary administrator does not in itself constitute expropriation or a transfer of title.
The status can theoretically be rescinded via a new presidential decision.
There is, nevertheless, the prospect of a secondary stage: the sale of the businesses.
Natalia Popravko of Business Amendment assesses that prospective buyers could emerge as Russian corporate groups or investors from nations that Moscow deems friendly.
According to legal experts and advisors cited by Kommersant, such a transaction could take six to eight months.
This is precisely what turns the decree of Vladimir Putin into something much bigger than an isolated Auchan or Nestlé matter.
It marks another chapter in the profound structural overhaul of the Russian economy after 2022.
The era during which major Western conglomerates could consider their Russian subsidiaries entirely insulated from geopolitics appears to have reached its conclusion.
Moscow now treats ownership, manufacturing, infrastructure, and supply chains as pillars directly tied to the economic security of the state.
This does not mean that the ultimate fate of Auchan, Nestlé, Lemana PRO, and FM Logistic has already been sealed.
It implies, however, that the center of gravity has shifted.
For the moment, Western conglomerates still remain the nominal proprietors of substantial assets.
Real operational control, however, is now exercised by a Russian administration.
And amidst today's confrontation between Russia and the West, that distinction is anything but cosmetic.
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