Nestlé is considering its options after the Kremlin announced control over its Russian business, a move aligned with Russia’s tighter grip on foreign assets since the Ukraine war began. The company, which has six factories in Russia and reported approximately 2 billion Swiss francs in sales there in 2021, expressed its commitment to protect its rights and maintain operations for the benefit of stakeholders, especially its employees.
The Kremlin’s decree also targeted French supermarket chain Auchan, transferring its Russian assets to temporary management. Other Western companies have faced similar situations, with many being forced to sell or hand over their assets to comply with sanctions and threats from Moscow. Analysts suggest that Nestlé could ultimately lose its Russian assets, which amount to roughly 2% of its sales, with little hope for compensation.
