Russia Places Assets of Auchan and Nestlé under Temporary Management

 

On 17 September 2026, the Russian President signed Decree No. 661 (“Decree 661”), amending Decree No. 302 of 25 April 2023 on external (temporary) management of certain property and property rights (“Decree 302”). Decree 661 adds 16 Russian legal entities owned by foreign (primarily Western) companies to the list of assets placed under temporary management.

The affected companies include:

• Nestlé Kuban LLC and Nestlé Russia LLC,
• three subsidiaries of the French FM Logistic,
• Auchan LLC (a subsidiary of French Sogepar),
• nine subsidiaries of Batilogistic, as well as
• Le Monlid LLC (formerly Leroy Merlin Vostok LLC) – the main Russian legal entity of the Lemana PRO retail chain.

L.E.V. Management LLC has been appointed as the temporary manager of all listed companies. The decree entered into force upon its official publication.

I. Background: External Administration of Foreign-Owned Assets

Decree 302 already established in 2023 the legal framework for the introduction of external (temporary) management over specific assets located in Russia, which are owned or controlled by legal entities and individuals related to so-called “unfriendly” countries. Such assets include shares in Russian companies, movable and immovable property as well as property rights. As per Decree 302, any such asset will be managed by the Russian Federal Agency for State Property Management or, upon a decision of the Russian President, by a different entity (“External Manager”). The External Manager exercises broad management and control powers over the seized assets. In practice, similar measures have frequently resulted in a permanent loss of control by foreign owners and, in some cases, amounted to a de facto expropriation.

II. Continuing Increase in Risks for Western Businesses

Decree 661 highlights the continuing elevated risk environment for assets of Western companies in Russia. The scope of assets subject to temporary management has been progressively expanded, and the Russian authorities have demonstrated a willingness to target major international groups across a wide range of sectors, including retail, consumer goods and logistics.

Western companies that still hold assets in Russia should – again – carefully assess their risk exposure, preparing for potential state intervention, and reviewing existing corporate structures, contractual arrangements and insurance coverage may help mitigate potential economic losses.

III. How Noerr Can Assist

Noerr’s team has a strong track record of advising on Russia-exit deals, sanctions compliance, and litigation and arbitration defence actions worldwide (including investment arbitration) – all areas that are highly relevant for dealing with the risks caused by Decree 661 and the tightened practices of the Russian authorities.