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- October 17, 202611°
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- October 17, 202611°
France asks Russia to lift temporary administration imposed on foreign companies
France asked Russia to withdraw its decision to place the local subsidiaries of some French and European companies under temporary administration. The measure covers Auchan, the former Leroy Merlin operations now operating under the name Lemana Pro, some FM Logistic subsidiaries and Nestlé’s assets in Russia.
France has objected to Russia’s decision to place the local subsidiaries of some French and European companies under temporary administration. France’s Foreign Ministry and Economy Ministry jointly called for the decision to be withdrawn.
The two ministries described the measure as “unjust” and called on Russian authorities to revoke the decision. The statement said France was maintaining close contact with the companies affected by the decision.
Operations placed under temporary administration
A decree signed by Vladimir Putin on Thursday provides for the operations of some foreign companies in Russia to be placed under temporary administration managed by L. E. V. Management.
The companies covered by the decision include French supermarket chain Auchan and the former Russian operations of French home-improvement group Leroy Merlin. Those operations operate under the name Lemana Pro. Some of the Russian subsidiaries of French logistics company FM Logistic were also included in the measure.
The Russian assets of Swiss food company Nestlé and the assets of several other foreign companies were also placed under temporary administration. Nestlé said it was assessing the decision’s impact on its employees and operations. Auchan did not immediately comment on the matter.
Russia’s explanation of the measure
Kremlin spokesman Dmitry Peskov said the mechanism concerned companies from countries that Russia defines as “unfriendly.”
Russia introduced the temporary administration mechanism for foreign companies in 2023. Similar measures were applied to several Western companies, including French food group Danone and Danish brewer Carlsberg.
The mechanism does not mean that the companies’ assets are permanently nationalized under the law.
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