Putin Orders Temporary Administration of Nestle Assets in Russia
The decree puts control of Nestlé and Auchan Russian businesses with Kremlin-appointed managers, affecting operations that employ about 37,000 workers, sources said.
- 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.
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Nestle said on Friday it was considering all options to protect its rights following the Kremlin's decision to take over the Swiss food manufacturer's Russian business.
Denominating companies from "unfriendly countries", the head of the Kremlin issued a decree to transfer the assets of these four European companies - three of them French - to a Russian entity.
ledauphine.com
Denominating companies from "unfriendly countries", the Russian president issued a decree on Thursday to place the assets in the country of these four European companies - three of them French - in a Russian company, L.E.V. Management.
Russia seizes control over assets of Nestle, French firms
Russia has placed the local businesses of Nestlé, Auchan and other Western-linked companies under temporary administration. Nestlé is weighing its options, while Auchan and Lemana Pro say their Russian operations continue as normal.
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