Vladimir Putin signed a decree placing Nestlé’s Russian business under temporary state administration. Control of these assets transfers to a state-appointed entity called AO L.E.V. Management.
The seizure includes six factories. The company employs more than 7,000 people in the region. The Kremlin targeted Nestlé and French retailer Auchan as part of a crackdown on companies from unfriendly countries.
This move responds to international sanctions related to the war in Ukraine. Nestlé has operated in Russia since the 1990s. The company previously halted non-essential imports and investments while maintaining essential food supplies.
Nestlé is currently assessing the decree and exploring its legal options. The company aims to protect its rights and ensure business continuity for its stakeholders. Analysts expect a limited direct financial impact on Nestlé’s global sales. The seizure signals heightened risks for all multinational corporations remaining in Russia.