Nestle Weighs Options After Kremlin Moves to Take Control of Russian Business
Nestlé is evaluating its options following a presidential decree by Russia's government that places control over its Russian business under temporary administration. The move, part of broader measures targeting foreign-owned assets since the Ukraine war began in 2022, has raised concerns about potential expropriation or forced sales. Nestlé operates six factories in Russia and had generated around 2 billion Swiss francs ($2.4 billion) in annual revenue from its Russian operations before scaling back activities due to geopolitical tensions. The company stated it is committed to protecting its rights and ensuring business continuity for stakeholders, particularly employees. Analysts suggest the financial impact on Nestlé will be marginal since Russia now contributes less than 1% of group sales after a significant reduction in activity. The Kremlin has previously used similar measures against other Western companies like Danone and Carlsberg. The decision reflects an ongoing trend by Moscow to tighten control over foreign assets, often transferring them later to local entities or individuals aligned with the government.
Topics: Kremlin Nestle Russia Ukraine war