Swiss food giant Nestle said it is weighing its options after the Kremlin moved to place the Russian assets of its business under temporary external administration, part of a renewed push against Western companies still operating in Russia amid the Ukraine war.
Nestle, maker of Nescafe coffee and KitKat chocolate bars, said in a statement it took note of the presidential decree, published on Russia's official legal portal on Thursday, and is "assessing the situation." Shares of Nestle traded 2.2% lower on Friday morning.
The move is widely seen as the first step toward transferring Nestle's Russian operations to Kremlin-friendly investors. "Right now, we're talking specifically about introducing external management; no other decisions have been made yet," Kremlin spokesperson Dmitry Peskov told RIA Novosti on Friday.
The decree also targeted French retailer Auchan and Lemano Pro, the former Russian arm of French DIY retailer Leroy Merlin. Their Russian assets are set to be transferred to a shell company called L.E.V. Management. Spokespeople for both firms were not immediately available for comment.
Nestle said it is "committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees."
Putin signed a decree in 2023 authorizing Moscow to place property belonging to people or entities from so-called "unfriendly" countries under temporary administration. Russia has since taken control of local units from dozens of companies, including Danish brewer Carlsberg, French food producer Danone and Finnish utility Fortum.
The action has prompted a domestic debate in Switzerland, which is not an EU member but has largely adopted Brussels' sanctions against Russia since Moscow's full-scale invasion in early 2022. Swiss voters are set to decide later this month on a proposal calling for a stricter interpretation of the country's longstanding neutrality.
Russia has said it no longer views Switzerland as neutral and has sharply criticized it for providing humanitarian aid to Ukraine.
