Putin Orders Temporary Administration of Nestle Assets in Russia
The decree puts control of the companies’ Russian operations in Kremlin-appointed hands as Moscow expands use of temporary administration against foreign firms.
- On Thursday, Russian President Vladimir Putin signed a decree placing Russian subsidiaries of French retailer Auchan and Swiss food company Nestle under temporary management, marking significant governmental intervention in foreign corporate operations.
- Neither Auchan nor Nestle exited Russia following the 2022 invasion of Ukraine, though Nestle scaled back operations by halting investments and stopping sales of brands including KitKat and Nesquik.
- The decree also placed a 0.007% stake held by French group Adeo in Monlid, the Russian entity of Leroy Merlin, under temporary management; the stores now operate under the Lemana PRO brand.
- In mid-August, Kommersant reported that Logistika requested this temporary management for Nestle, a move the outlet noted "could be the first stage in an ownership-transfer process."
- This strategic shift underscores a notable escalation in measures affecting global businesses within Russia, as the state assumes oversight of foreign corporate assets.
111 Articles
111 Articles
Nestlé Weighing All Options After Kremlin Takes Control of Its Russian Business
Nestlé said Friday that it was weighing all options to protect its rights after the Kremlin decided to take control of the Swiss food maker's Russian business, the latest move against a Western company since the full-scale invasion of Ukraine.
The Russian subsidiary of the French large distribution chain Auchan reported that it had requested "clarifications" from the authorities after the transfer of its assets to a Russian company under a decree of the president...
Six factories, thousands of employees and well-known food brands: Nestlé has been active in Russia for decades. Now, a company designated by Moscow takes control. Analysts see the risk of permanent loss.
President Putin has placed two Russian subsidiaries of the group under compulsory administration. The Swiss want to defend themselves. Hundreds of foreign companies have left the country so far.
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