Nestlé, the maker of KitKat, is evaluating its options after the Russian government, led by President Vladimir Putin, seized control of its operations in Russia, placing them under temporary administration. This action was part of a presidential decree that also included the assets of French supermarket chain Auchan.
This represents a significant takeover of foreign assets since 2024. Nestlé, which also produces popular brands like Nescafé and Cheerios, stated it is committed to protecting its rights while ensuring continuity for employees and stakeholders.
The seizure occurred amid escalating tensions between Russia and Europe. Since the invasion of Ukraine in 2022, over 1,000 companies have exited the Russian market, though some, like Mondelez and PepsiCo, have remained.
Russia recently amended its laws to facilitate the takeover of shares owned by “unfriendly” firms, targeting other companies like Carlsberg and AB InBev. Nestlé has been operating in Russia since 1995 but has reduced its presence since the onset of the Ukraine conflict. The company has six manufacturing facilities in Russia and around 7,000 employees, with Russian operations generating approximately 2 billion Swiss francs in annual revenue, which accounts for about 2% of its global sales.
