# Putin seizes Nestle's Russian business in asset grab

> Russia places Swiss food giant's local operations under state control as Kremlin tightens grip on Western companies.
- Title: Putin seizes Nestle's Russian business in asset grab · CNBC
- Summary: Russia places Swiss food giant's local operations under state control as Kremlin tightens grip on Western companies. Putin is using a 2023 legal framework to…
- Keywords: nestle, putin, russia, asset seizure, ukraine war, western companies, kremlin, external administration, auchan, leroy merlin, sanctions, business
- Source: CNBC — https://cnbc.com/2026/09/18/nestle-russia-assets-putin-ukraine-war.html
- Author: Sam Meredith
- Published: 2026-09-18T11:23:07+00:00
- Read time: 1 min
- Topics: nestle, putin, russia, asset seizure, ukraine war, western companies, kremlin, external administration, auchan, leroy merlin, sanctions, business
## Kremlin seizes Nestle's Russian assets
Russia placed Nestle's local business under temporary external administration via presidential decree, a move widely seen as the first step toward transferring control to Kremlin-friendly investors.
## Three Western companies targeted
The decree also targets French retailer Auchan and Leroy Merlin's former Russian arm, with all three companies' assets set to transfer to a shell company called L.E.V. Management.
## Putin's 2023 legal framework
Russia introduced a decree in 2023 authorizing Moscow to place property from unfriendly countries under temporary administration, already used against Carlsberg, Danone, and Fortum.
## Switzerland's sanctions alignment
Switzerland, not an EU member, has largely adopted EU sanctions against Russia since the 2022 invasion, prompting Moscow to reject its neutrality claim and criticize its Ukraine aid.
## Nestle assesses next steps
Nestle said it is assessing the situation and committed to protecting its rights and ensuring business continuity for employees and stakeholders. The company's stock fell 2.2% on the news.

> Nestlé is 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.
## Key takeaway

Putin is using a 2023 legal framework to systematically transfer Western corporate assets in Russia to state-friendly operators, starting with Nestle, Auchan, and Leroy Merlin.