France has urged Russia to reverse its decision to place Nestlé and other European-owned businesses under external administration, adding diplomatic pressure over the Kremlin’s latest intervention in foreign corporate assets.
“France condemns the placement of Russian subsidiaries of several French and European companies under provisional administration without justification,” the French foreign and economy ministries said in a joint statement reported by AFP.
The French government said it was in contact with the affected companies.
President Vladimir Putin’s decree transfers management of Nestlé’s Russian shareholdings to L.E.V. Management. Nestlé remains their legal owner, distinguishing the measure from formal nationalisation or confiscation, but has lost authority over operations and corporate governance.
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The intervention also covers entities connected to French retailer Auchan, logistics groups FM Logistic and BATI Group, and Lemana Pro, the former Leroy Merlin business.
The Kremlin said the companies’ links to European countries it considers 'unfriendly', alongside Western support for Ukraine, influenced the decision. It stressed that no action beyond external management had yet been taken.
Nestlé said it was assessing its options, protecting its rights and seeking continuity for employees. It has not announced legal action, disclosed the book value at risk or said whether it will deconsolidate the business.