Russian President Vladimir Putin issued a presidential decree late on Thursday, September 17, 2026, to take control of the Russian assets of Swiss food giant Nestle and French supermarket chain Auchan. The companies' operations have been placed under temporary administration by the Kremlin. In response on Friday, September 18, 2026, Nestle stated it is assessing the situation and its options while seeking to protect its rights and ensure business continuity for its employees and stakeholders.
This action follows a pattern of the Russian government taking control of shareholdings belonging to companies from nations it deems "unfriendly." Since the 2022 invasion of Ukraine, Russia has modified laws to facilitate these takeovers. Similar measures were previously applied to other international firms, including the brewer AB InBev, Carlsberg, and Danone. While over 1,000 firms exited the Russian market following the start of the conflict, others such as PepsiCo and Mondelez have maintained a presence.
Nestle, which produces brands such as KitKat, Nescafe, and Cheerios, has operated in Russia since 1995. Although the company trimmed its operations after the war began, it still maintains six manufacturing sites within the country. The Kremlin's decree is considered the largest takeover of foreign corporate assets by the Russian government since at least 2024.
The scale of this event establishes a precedent for the remaining foreign corporations operating in Russia, as it demonstrates the Russian government's use of 2022 legal changes to take control of large-scale manufacturing and retail infrastructures. International investors and the boards of other multinational firms remaining in the region, such as those at PepsiCo and Mondelez, now face a risk that their assets could be placed under temporary state administration. This move removes the original owners' ability to manage their investments, manufacturing sites, and supply chains within Russian borders.
What happens next depends on the "options" currently being reviewed by Nestle and Auchan, though the source did not specify what legal or diplomatic avenues remain open. The administration of these assets is currently labeled as "temporary" under the decree, but no specific end date for state control has been reported. Nestle has stated it is committed to taking "all necessary steps" to protect its rights, which may involve international legal challenges or further adjustments to its operations. The impact on the French-owned Auchan assets and their specific employee counts or revenue figures in Russia was not detailed in the report.