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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Nestlé, a food company, is considering legal action against Russia's President Putin's coercive administration of the Russian subsidiary.
The Kremlin has nationalized the Russian assets of Nestle and the French retail chain Auchan, CNN reported. This is the latest in a series of seizures of assets belonging to private companies by the state treasury.
The Kremlin is taking action against Western companies that have remained in Russia. Switzerland is one of the "unfriendly" countries, the reason being that Nestlé is threatening expropriation.
Kremlin orders Russia businesses of Nestle, Auchan seized - Regional Media News
FRANKFURT, Germany (AP) - The Kremlin has ordered the Russian businesses of Swiss-based food and beverage company Nestle and French retailer Auchan placed in temporary administration, procedure that previously has led to the forced sale of Western businesses to Russian owners at knockdown prices. The [...]
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