Putin Orders Temporary Administration of Nestle Assets in Russia
The decree puts control of Nestlé and Auchan Russian businesses with Kremlin-appointed managers, affecting operations that employ about 37,000 workers, sources said.
- On Thursday, Russian President Vladimir Putin signed a decree placing Russian subsidiaries of French retailer Auchan and Swiss food company Nestle under temporary management, marking significant governmental intervention in foreign corporate operations.
- Neither Auchan nor Nestle exited Russia following the 2022 invasion of Ukraine, though Nestle scaled back operations by halting investments and stopping sales of brands including KitKat and Nesquik.
- The decree also placed a 0.007% stake held by French group Adeo in Monlid, the Russian entity of Leroy Merlin, under temporary management; the stores now operate under the Lemana PRO brand.
- In mid-August, Kommersant reported that Logistika requested this temporary management for Nestle, a move the outlet noted "could be the first stage in an ownership-transfer process."
- This strategic shift underscores a notable escalation in measures affecting global businesses within Russia, as the state assumes oversight of foreign corporate assets.
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120 Articles
Russia seizes control over assets of Nestle, French firms
Russia has placed the local businesses of Nestlé, Auchan and other Western-linked companies under temporary administration. Nestlé is weighing its options, while Auchan and Lemana Pro say their Russian operations continue as normal.
Russia has tightened control of foreign assets since the beginning of the war in Ukraine in 2022. Now it has hit the Swiss food company Nestlé.
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The StandardRussia seizes assets of Nestle, French firms
WARSAW: Russian authorities have seized the residual businesses and assets of Swiss food giant Nestle and three French groups, the latest move against Western firms in response to sanctions against Moscow over its war against Ukraine.A decree signed by President Vladimir Putin issued late on Thursday (Sep 18)
Nestlé Weighing All Options After Kremlin Takes Control of Its Russian Business
Nestlé said Friday that it was weighing all options to protect its rights after the Kremlin decided to take control of the Swiss food maker's Russian business, the latest move against a Western company since the full-scale invasion of Ukraine.
A Russian firm took over "temporary management of the businesses of Nestlé (Switzerland) and Auchan (France). In previous cases, temporary administration often preceded expropriation by the state, the assets being subsequently transferred to individuals or companies connected with the Kremlin. Russian President Vladimir Putin ordered Thursday as Russia's assets of Nestlé and Auchan companies ...
The Russian subsidiary of the French large distribution chain Auchan reported that it had requested "clarifications" from the authorities after the transfer of its assets to a Russian company under a decree of the president...
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