Nestlé insists there has been no "change of ownership" in its Russia business despite the Kremlin placing the Swiss giant’s local assets under “temporary administration”.
In an announcement yesterday (21 September), the Nestlé Group of Companies in Russia confirmed shares in its authorised capital had been "transferred" to the temporary management of Russian joint-stock company LEV Management.
However, Nestlé added that “this action does not constitute nationalisation of the company or a change of ownership" in its Russian subsidiary.
The statement follows a decree signed by Russian President Vladimir Putin last week that placed Nestlé Russia and Nestlé Kuban under state-directed administration.
Under the decree, the interests held by Société des Produits Nestlé and Nestlé Deutschland - both units of the wider Nestlé group - would be managed by LEV Management.
Nestlé said yesterday its “full commercial operations” in Russia continue and pledged to “unconditionally” fulfil obligations to customers, partners and employees.
The subsidiary also expressed confidence that cooperation with LEV Management would contribute to the company’s “further development and improve its operational efficiency”.
The conciliatory tone from the local division follows Nestlé’s initial reaction immediately after the decree was published, when the Nescafé and KitKat owner said it was “assessing the situation and its options”.
The company further added at the time that 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”.
Nestlé has maintained a presence in Russia since the invasion of Ukraine in 2022, a stance that drew scrutiny as several other Western multinationals exited.
In its 2025 annual report, the Swiss company stated that it operated six factories in Russia producing powdered drinks, dairy products, confectionery, prepared dishes and pet food.
Russia has previously used temporary administration measures targeting Western consumer groups, seizing control of local businesses belonging to Danone and Carlsberg in 2023.
Danone subsequently completed the sale of its local assets in 2024, booking a €1.2bn ($1.38bn) loss.
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