Putin targets Nestle's Russian business as Kremlin tightens grip on Western assets
Nestlé is assessing its options after Russia placed the Swiss food giant’s local assets under temporary external administration.
TL;DR
- Nestlé is evaluating its response to a Russian presidential decree placing its Russian business assets under temporary external administration.
- The decree also targets French companies Auchan and Lemana Pro, with their assets potentially transferred to L.E.V. Management.
- Kremlin spokesperson Dmitry Peskov stated that only external management has been introduced, with no further decisions made yet.
- This action follows a 2023 decree allowing Moscow to place property from 'unfriendly' countries under temporary administration.
- Dozens of companies, including Carlsberg, Danone, and Fortum, have already had local units taken under control by Russia.
- Switzerland's adoption of EU sanctions against Russia has led to Russia questioning its neutrality.
- Nestlé shares traded 2.2% lower on Friday following the news.