Russian President Vladimir Putin has signed a decree under which the Russian assets of Auchan and Nestle are to be forcibly transferred to the management of L.E.V. Management JSC. The same entity will take control of the assets of logistics operators FM Logistics, Bati Logistics, and Le Monlid LLC — the former Leroy Merlin chain in Russia.
Interfax reported on the September 17 decree, citing the text of the document published on the legal information portal. The year in which the decree was signed was not specified in the published information.
The document provides for the transfer of the international corporations’ assets to the management of L.E.V. Management. At the same time, it does not provide details on the duration of such management, the list of specific assets, or whether ownership rights to them are changing.
The management company was registered in 2024
According to Russian registries, L.E.V. Management JSC was registered in Moscow in October 2024. Andrey Krayushkin is listed as the legal entity’s general director, while information about the company’s ultimate beneficiaries has not been disclosed.
The original report states that the company had not conducted commercial activities and describes it as a shell entity.
The companies’ presence on the Russian market
Swiss company Nestle has operated in Russia since 1994 and has six major production sites in different regions of the country. The combined revenue of its main legal entities in Russia amounted to nearly 30 billion rubles in 2021. The company has classified data for the years following the start of Russia’s full-scale invasion of Ukraine.
French retail chain Auchan has operated in Russia since 2002 and has 230 stores in 100 cities. Since 2022, its Russian division has stated that it was shifting to autonomous operations, but it has not left the Russian market. Auchan LLC is almost entirely owned by France’s Sogepar.
Leroy Merlin had operated on the Russian market since 2004. The retailer later changed its name to Lemana PRO and managed a network of 112 stores and 11 dark stores.
In December 2023, Scenari Holding LP, a company registered in the United Arab Emirates, became the owner of 99.99% of the Russian legal entity Le Monlid LLC. France’s Adeo Group formally retained a 0.007% stake.
Status on the NACP list
In 2023, the National Agency on Corruption Prevention added Nestle to its list of international sponsors of war. The reasons cited were the corporation’s continued operation of enterprises in Russia, supplies of goods there, and the expansion of its Russian production base.
Auchan was also added to the list of international sponsors of war.
