Russian President Vladimir Putin signed a decree on Thursday placing the Russian assets of Swiss food giant Nestlé and French retailer Auchan under temporary external administration. The move transfers control to the little-known Moscow firm L.E.V. Management, which was registered in 2024.

Kremlin spokesman Dmitry Peskov said Friday that the decision targeted companies from "unfriendly" countries actively involved in hostilities against Russia. He pointed to military aid provided by Switzerland and France to Ukraine as a key factor.

The decree also covers the Russian operations of former Leroy Merlin entity Lemana Pro, FM Logistic, and Bati Logistics. This represents the most significant action against Western firms since Russia seized assets of Danone and Carlsberg in 2023.

Nestlé operates six factories in Russia employing more than 7,000 people. Its Russian sales accounted for about 2 percent of group revenue in 2021, the last year detailed figures were released. The company said it is assessing its options and remains committed to protecting its rights and ensuring business continuity for stakeholders, especially employees. Nestlé shares fell about 2 percent in Zurich trading.

Auchan, which stayed in Russia after the 2022 invasion unlike many Western peers, runs roughly 230 stores and employs around 24,000 to 30,000 people. The retailer generated 127 billion rubles in sales in the first half of 2026. It has not issued a public response.

Russia has seized more than $50 billion in private property since the Ukraine conflict began, according to estimates from a Moscow law firm. The latest action continues a pattern of nationalization targeting foreign-owned businesses.

Analysts view the temporary administration as a potential step toward permanent transfer of ownership. Previous cases have seen assets sold to Russian entities or individuals with ties to the Kremlin.

The seizures underscore escalating economic pressure on companies from nations supporting Ukraine. Nestlé and Auchan had scaled back operations in recent years but maintained a presence in the market.