[Opinion] When geopolitics also becomes a property risk

Six factories, some 7,000 employees, and hundreds of stores. That’s how much Nestlé, Auchan, and Leroy Merlin are losing in Russia today. These aren’t footnotes in an annual report, but real, physical assets built up over decades.

The failure of “local for local”?

On September 17, Vladimir Putin placed the assets of various foreign companies under temporary administration. Among them are the Russian operations of Nestlé and Auchan, as well as companies affiliated with FM Logistic and the former Leroy Merlin. Formally, this is not expropriation, but for the companies in question, that offers only limited reassurance. After all, they are losing all control over their assets.