Confiscating European companies—Russia is awesome

Confiscating European companies—this phrasing oversimplifies the matter. More precisely, on April 26, Russian President Putin signed a decree placing the Russian subsidiaries of an Italian and a German company under ‘temporary management’ by Russian enterprises. The Italian company is a subsidiary of Ariston Thermo Group, a heating equipment manufacturer; the German company is Bosch Home Appliances. Pursuant to the decree signed by President Putin on April 26, both companies are required to transfer 100% of their shares to Gazprom PJSC and its affiliated entities. Whether described as ‘temporary management’ or outright transfer of 100% equity, the core outcome is full takeover of these two companies by Russia’s state-owned Gazprom. Germany has not publicly reacted; Italy’s Foreign Ministry, however, responded urgently. First, Italian Foreign Minister Antonio Tajani posted on X (formerly Twitter), demanding that Russia clarify the nationalization of Ariston Thermo’s Russian subsidiary. Tajani also instructed senior Foreign Ministry officials to urgently summon the Russian Ambassador to Italy. As Tajani stated, he had already consulted with EU and German counterparts and communicated directly with Ariston Thermo’s executives, pledging that the Italian government would ‘stand with the company and remain ready to protect it in all markets.’ Yet the reality is problematic: European countries—including Germany and Italy—are actively supporting Ukraine, which is resisting Russia’s armed invasion. Against this backdrop, although diplomatic relations between Italy and Russia remain formally intact, it is extremely difficult for Italy to ‘protect’ its enterprises operating in Russia. On one hand, the decree was signed by President Putin himself—making reversal highly unlikely. Though officially termed a ‘transfer,’ in practice it amounts to forced confiscation. On the other hand, Dmitry Medvedev—former Russian president and now Deputy Chair of Russia’s Security Council—publicly justified the move: ‘The U.S. government has seized Russian sovereign assets; Russia lacks the capacity to retaliate in kind, and thus must resort to asymmetric measures—i.e., confiscating private assets located within Russia’s jurisdiction.’

Putin wields the confiscation hammer again: Nestlé and Auchan assets seized; investment risk in Russia spikes

According to Vedomosti, Nestlé, Auchan, and two other French companies operating in Russia have had their assets temporarily transferred to ‘L.E.V. Management’—a little-known Russian firm with no public profile. No verifiable information exists regarding its shareholders or ultimate beneficial owners. Investigative media outlet Novaya Gazeta Europe reported that L.E.V. Management was established only at the end of 2025 and is headed by Andrey Kraushkin, a general in Russia’s Ministry of Internal Affairs. Accounting documents show the company conducted no commercial activity prior to the end of 2025, employed just one person, and has completely opaque ownership. Its registered capital stands at merely 15,000 rubles—less than $200. Earlier, Vedomosti reported that KS Logistika—a Russian company—had petitioned President Putin to place Nestlé’s Russian assets under its temporary management, citing ‘existing management’s obstruction of expansion’ as justification. This request laid the groundwork for the subsequent confiscation. Dmitry Peskov, Kremlin spokesperson, stated that current measures against Nestlé and Auchan remain ‘at the stage of temporary trusteeship’ and that ‘no further decisions have been made regarding asset sale or change of ownership.’ However, it bears emphasis that once a foreign enterprise is declared under ‘temporary trusteeship’ by the Kremlin, there is absolutely no precedent—and no realistic prospect—for the return of its assets. For instance, after Danone’s Russian assets were confiscated, they were ultimately sold to the nephew of Chechen leader Ramzan Kadyrov. Carlsberg’s assets were transferred to a businessman closely tied to the Kremlin. Thus, ‘temporary trusteeship’ here merely signifies that the Russian assets of these two European firms will be seized—not by the state per se, but by whichever Kremlin-connected individual ultimately takes control. That identity remains undetermined. Third, the Swiss and French governments have issued statements urging Russian authorities to rescind their decision to seize European companies’ assets in Russia. In a joint statement on September 18, France’s Ministry of Economy and Ministry of Foreign Affairs declared: ‘France condemns Russia’s placement of multiple French and European companies’ Russian subsidiaries under temporary management without legitimate grounds.’ The statement added that the French government ‘is maintaining close contact with the affected companies and calls on Russian authorities to reverse this decision.’ The Swiss government expressed concern over the seizure of Nestlé’s Russian assets and affirmed its support for the company’s efforts to overturn the Russian decision. Nestlé stated it is assessing the situation. In a Friday statement, the company said: ‘Nestlé remains committed to taking all necessary measures to protect its interests and ensure business continuity, thereby safeguarding the interests of all stakeholders—especially its employees.’ However, Nestlé declined to elaborate on any specific actions under consideration. On Friday, Nestlé’s share price fell 2.4%. Auchan operates 230 stores and an online business in Russia, employing approximately 30,000 Russians. The company issued no statement on Friday and declined to comment. Leroy Merlin (now operating in Russia under the local brand name Lemana Pro) stated it had not yet received formal notification from authorities and confirmed its operations remain normal. Jean-Philippe Belchi, analyst at Vontobel Bank, noted that Nestlé has suspended most of its sales, non-essential imports and exports, advertising, and capital investments in Russia. He estimates Russia currently accounts for about 1% of the group’s total sales.

Russia Places European Firms' Assets Under Temporary Management Ahead of EU Summit

Oct 15, 2026

Russia decreed temporary management of assets for European firms including Nestle and packaging makers. The measure responds to EU support for Ukraine ahead of President Zelenskiy's summit address.

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Russia Places European Firms' Assets Under Temporary Management Ahead of EU Summit

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