Putin Orders Temporary Administration of Nestle Assets in Russia
- 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.
222 Articles
222 Articles
Moscow's decision leaves two European giants with less room for manoeuvre on the Russian market, where they keep thousands of workers and hundreds of points of sale and industrial units. Vladimir Putin's decree transfers the management of operations to a Russian company, without altering the legal ownership of assets for now.
Russian authorities have seized the Russian assets of Swiss food giant Nestle and three other French companies. In a decree issued on Thursday, the assets of these companies were transferred to a Russian company, LEV Management. The Kremlin says the companies represent "unfriendly states" that support Ukraine.
The KREMLIN has decided to take over the Russian assets of Switzerland's Nestlé and France's Auchan. The decision is part of a wider wave of nationalization of assets of companies from 'enemy' countries.
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