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.
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Putin is taking control of other Western companies. Nestlé, Auchan and Leroy Merlin's Russian businesses were put under Russian administration by decree.
The Economic Times
Times of IndiaRussia seizes Nestle, Auchan, Lemana Pro and FM Logistic assets in latest Western corporate takeover
Russian authorities have seized assets of Nestle and three French groups. A decree signed by President Vladimir Putin transferred these Russian operations. These companies' Russian subsidiaries were transferred to LEV Management. Most Western firms had already sold or isolated their Russian holdings. This seizure echoes Moscow's previous takeover of Danone's Russian business.
(Berlin=Yonhap News) Correspondent Kim Gye-yeon = The Russian government has effectively seized the local subsidiary of Nestlé, a global food company headquartered in Switzerland. Russia... Ukraine...
The assets of large Western companies in Russia were temporarily administered through a decree signed on Thursday by President Vladimir Putin.
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