Kremlin seizes Nestle's Russian assets

Russia placed Nestle's local business under temporary external administration via presidential decree, a move widely seen as the first step toward transferring control to Kremlin-friendly investors.

Three Western companies targeted

The decree also targets French retailer Auchan and Leroy Merlin's former Russian arm, with all three companies' assets set to transfer to a shell company called L.E.V. Management.

Putin's 2023 legal framework

Russia introduced a decree in 2023 authorizing Moscow to place property from unfriendly countries under temporary administration, already used against Carlsberg, Danone, and Fortum.

Switzerland's sanctions alignment

Switzerland, not an EU member, has largely adopted EU sanctions against Russia since the 2022 invasion, prompting Moscow to reject its neutrality claim and criticize its Ukraine aid.

Nestle assesses next steps

Nestle said it is assessing the situation and committed to protecting its rights and ensuring business continuity for employees and stakeholders. The company's stock fell 2.2% on the news.

“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.”