Putin approves takeover of French and Swiss giants’ Russian assets. Why now?

Moscow has linked the move to Western support for Ukrainian strikes on Russian infrastructure President Vladimir Putin has ordered the Russian subsidiaries of Nestle, Auchan and Leroy Merlin placed under temporary management owing to Western support for Ukrainian strikes on Russian civilian and economic infrastructure.

Moscow introduced the temporary management mechanism in 2023 in response to Western companies leaving Russia and the seizure of Russian state and private assets abroad.

Officials said it was intended to keep strategically important businesses operating and shield the economy from decisions by “unfriendly” countries.

On Thursday, Putin amended the 2023 decree to add the Russian assets of Nestle, Auchan and Leroy Merlin to the list.

All three were transferred to L.E.V.

Management, a business and management consultancy.

Why now? Kremlin spokesman Dmitry Peskov said the companies’ home countries and their support for Kiev were major factors behind the decision.

Read more Moscow slams Finland’s Stubb for backing Kiev’s strikes on Russian businesses (VIDEO) “We are talking about European companies, companies from unfriendly countries,” he told journalists on Friday.

“These are unfriendly countries that are actively involved in military actions against our country,” Peskov said, adding that some also support Ukrainian strikes “against our civilian economic infrastructure.” Why these companies? Auchan and Leroy Merlin are controlled by France’s Mulliez family through ELO Group and ADEO respectively.

Nestle’s Russian business was controlled by subsidiaries of the Swiss food giant.

France has been one of Kiev’s major military backers throughout the conflict.

President Emmanuel Macron also pushed a “forward deterrence initiative” earlier this year that could see French nuclear weapons deployed elsewhere in Europe.

Moscow has warned that such a strategy could backfire, saying it cannot “ignore an obvious buildup of the nuclear component of NATO’s joint potential.” Read more Lowering the nuclear threshold: Is NATO’s new ‘deterrence’ initiative a path to disaster? Switzerland, meanwhile, has backed EU sanctions against Russia, prompting Moscow to designate it an “unfriendly nation.” Bern has also considered easing restrictions on the re-export of Swiss-made weapons to Ukraine, sparking criticism from the country’s largest party that its longstanding neutrality is being eroded.

Strikes on Russian infrastructure The takeover also comes amid continued Ukrainian attacks on Russian civilian and energy infrastructure.