France calls on Moscow to reverse takeover of European assets

A decree signed by President Vladimir Putin late Thursday transferred the Russian operations of Nestle, French retailer Auchan and the former Leroy Merlin DIY chain, now known as Lemana Pro, to a company called LEV Management.

Investigative outlet Novaya Gazeta Europe reported that LEV Management was created only at the end of 2025, and is headed by a Russian interior ministry general. It had no known business activity.

The decree also covers the Russian subsidiaries of French logistics group FM Logistic.

"France condemns the unjustified placement under temporary administration of the Russian subsidiaries of several French and European companies," the foreign and economy ministries said in a joint statement late Friday.

They said France was "in close contact with the companies concerned" and called on the Russian authorities "to reverse this decision".

Russia seizes assets of Nestle, French firms over West's Ukraine support

Unfriendly states

The takeover is the latest move by Russia against Western firms in response to a barrage of sanctions over its war against Ukraine, now in its fifth year.

Most Western companies quickly sold their Russian operations and holdings after the Ukraine invasion, or at least isolated them, as sanctions have made trading in most goods difficult.

Others remained, citing concerns for their employees or citizen's well-being, but often sharply scaling back their operations.

Russia has since made it difficult for firms to leave, requiring presidential authorisation for deals, or seizing the assets outright. 

The Kremlin ​said on Friday that hostile actions by "unfriendly" countries had played a role in its decision to take control of the assets.

French giants Leroy Merlin, Auchan and Decathlon under fire for Russia ties

Assets at risk 

Auchan, which has operated in Russia under the name Achan since 2002, is one of the country's main retailers, with 241 stores in the country, including 62 hypermarkets, and over 33,000 employees according to its website.

Achan said Friday that it had requested "clarifications" from the authorities over Putin's decree.

Nestlé has six factories in Russia and employs around 7,000 people, mainly selling baby food, coffee, pet food and confectionery, a spokesperson said.

In a short statement, Nestlé said it was "committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees".

"The company is assessing the situation and its options," it added.

The latest seizure echoes a string of other forced asset transfers, including Moscow's 2023 takeover of Danone's Russian business, which was later sold to a nephew of Chechen leader Ramzan Kadyrov.  

French food firm Danone to withdraw from Russian dairy sector

'Not intimidated'

Earlier on Friday, President Emmanuel Macron said he had ordered his government to draw up a plan to protect critical infrastructure against drone and cyber attacks.

"In recent weeks, the threat – particularly the Russian hybrid threat – facing Europeans and France has intensified," the president said after meeting in Paris with political party leaders to discuss international developments.

Macron said Moscow sought to intimidate Europe and break the continent's resolve in supporting Ukraine in the war with Russia.

"The result will be the opposite," he continued. "We are not intimidated, because we know that our security today and tomorrow is at stake in Ukraine."

Macron cited an attempted drone attack at Leipzig airport in August, which the German government concluded Moscow was behind, as evidence of the changing nature of Russian aggression.

Russia says European allegations of hybrid attacks are baseless and the result of anti-Russian hysteria.

(with newswires)