On Thursday, Russian President Vladimir Putin issued a formal decree that transfers the local Russian operations of two major multinational companies, Nestle and Auchan, into the temporary control of the Russian government. This action represents a significant escalation in the state's intervention into the affairs of foreign businesses operating within the country.

While the Kremlin has characterized this move as a temporary administrative measure, the practical effect is that the original owners have lost control over their Russian assets. The decree mandates that these businesses be placed under the management of another entity designated by the Russian state. This development follows a broader trend of foreign companies facing increased pressure or exit barriers since the start of the conflict in Ukraine, with the Russian government frequently utilizing regulatory and legal mechanisms to seize or restrict the operations of firms headquartered in nations that have imposed sanctions on Moscow.

There is currently limited information regarding the specific duration of this "temporary" control or the criteria used to select which companies are targeted. The move signals a tightening of state oversight regarding foreign capital, as the Russian government continues to consolidate control over the domestic economy in response to international economic isolation.