The Russian government has seized control of Nestlé’s business in the country, placing it under temporary administration alongside French supermarket chain Auchan on Thursday.
The business’ Russian assets will be handed over to a holding company called AO L.E:V Menedzhment (Management), according to a decree signed by Putin and published online.
Nestlé this morning said it had “taken note” of the decree, and was “assessing the situation and its options”:
“Nestlé 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.”
While Nestlé has claimed to have significantly scaled back its Russian presence, and stopped all imports and exports apart from essential products such as baby food, cereals and tailored nutrition, it has been criticised by independent groups, Ukrainian officials and was the subject of a claimed 2022 cyberattack for failing to sever ties with the country.
In 2023, Carlsberg was forced to exit the country after a presidential decree placed control of its operations under temporary management. The then Carlsberg CEO Jacob Aarup’Andersen said at the time Russia had “stolen” its business in the country.
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