Nestlé is assessing its options after Russia placed the Swiss giant's operations in the country under "temporary administration".
A decree signed by Russia President Vladimir Putin yesterday (17 September) adds stakes in Nestlé Russia and Nestlé Kuban to the list of assets subject to temporary administration.
The interests, held by Société des Produits Nestlé and Nestlé Deutschland, will be managed by Russian joint-stock company LEV Management. Both companies are part of the wider Nestlé group.
“Nestlé takes note of Russia's presidential decree, published yesterday, that places Nestlé Russia under temporary external administration,” the company said today (18 September). “The company is assessing the situation and its options.”
The company added it is "committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees".
The decree places 84.082% of Nestlé Russia, owned by Société des Produits Nestlé, and 15.918%, owned by Nestlé Deutschland, under the so-called temporary administration.
It also covers 67.44% of Nestlé Kuban held by Société des Produits Nestlé and 32.56% owned by Nestlé Deutschland.
The move follows a reported request by Russian logistics business KM Logistics to place Nestlé subsidiaries under state control.
Last month, Russian business daily Kommersant said the company had cited Nestlé’s failure to expand production capacity in Russia and to export products made there.
At the time, a Nestlé spokesperson told Just Food the Russian government had not contacted the company about the request.
The Nescafé and KitKat owner said it “continues to operate our offices and factories in Russia, meets regulatory requirements and fulfils our obligations”.
Nestlé’s 2025 annual report said the company had six factories in Russia producing powdered drinks, dairy products, confectionery, prepared dishes and pet food.
The decree also places interests in French retail group Auchan under temporary administration.
Just Food has contacted Auchan for comment.
After the invasion of Ukraine in 2022, the presence of western multinationals in Russia was scrutinised. Some companies left but others, including Nestlé, remained. At the time, Nestlé faced criticism from Ukraine’s President Zelensky.
Russia seized Danone’s local assets in 2023 before the French group sold them the following year, recording a €1.2bn ($1.38bn) loss. Carlsberg’s stake in Baltika Breweries was also seized in 2023.
