Nestlé SA is facing the risk of losing control over its Russian operations after a local logistics company filed a legal claim to take over the Swiss group’s business in the country.
According to a report by Russian business newspaper Kommersant on Monday, KS Logistika has initiated legal proceedings to seize Nestlé’s assets and operations in Russia. The move follows months of heightened regulatory scrutiny and legal uncertainty for foreign companies operating in the country.
A Nestlé spokesperson confirmed that discussions are underway but emphasized that the company has not been formally expropriated. The Swiss conglomerate stated it remains committed to its Russian business while navigating the evolving legal landscape.
The potential loss of control comes as Nestlé, like many Western firms, has grappled with the fallout from geopolitical tensions and sanctions imposed following Russia’s invasion of Ukraine. The company has previously suspended new investments in Russia but continues to maintain its existing operations.
KS Logistika’s legal bid, if successful, could set a precedent for other foreign businesses with Russian subsidiaries. The case underscores the broader challenges multinational corporations face in maintaining control over assets in jurisdictions subject to sanctions or political pressure.
Nestlé has not disclosed further details on the legal proceedings or potential outcomes. The company’s shares were trading marginally lower in early European trading on Tuesday, reflecting investor concerns over the development.
