Nestle 'assessing options' after Putin places Russian assets under state control
Russian President Vladimir Putin has placed the local assets of Nestle and Auchan under temporary state administration. This move follows a 2023 decree allowing the Russian government to seize control of assets belonging to companies from countries deemed unfriendly.
Why it matters
This highlights the increasing geopolitical risk for multinational corporations operating in Russia and the potential for further asset seizures amid ongoing international tensions.
Russian president Vladimir Putin has placed the Russian assets of Swiss food giant Nestle and French supermarket group Auchan under temporary administration, according to a presidential decree published on Thursday. Nestle has said that they are assessing the situation and their options.The assets have been transferred to the temporary management of Russian company L.E.V. Management. The decree also covers assets linked to FM Logistics and the Russian business of former Leroy Merlin, now operating as Lemana Pro.The move affects two Nestle entities, Nestle Russia and Nestle Kuban, with shares held by Nestle's Swiss and German subsidiaries brought under the temporary management arrangement. Auchan's Russian subsidiary has also been placed under the same management.Nestle said on Friday that it was assessing the situation and its options, with a particular focus on its employees.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in