Nestlé, the Swiss food giant known for brands like Nescafé and KitKat, announced on Friday that it is assessing the implications of a Russian presidential decree that places its Russian assets under temporary external administration. This decree, signed by President Vladimir Putin, is perceived as an initial step towards transferring these assets to investors aligned with the Kremlin.
Nestlé stated its commitment to protecting its rights and ensuring business continuity for its stakeholders, particularly employees. Following the announcement, Nestlé's shares fell by 2.2%. The decree also affects other companies, including French retailer Auchan and Lemano Pro, which is the former Russian arm of Leroy Merlin.
Kremlin spokesperson Dmitry Peskov clarified that the current focus is solely on introducing external management, with no further decisions made yet. This action is part of a broader trend where Russia has taken control of local units from various foreign companies, including Carlsberg and Danone, since the onset of the Ukraine conflict.
The situation is further complicated by Switzerland's adoption of EU sanctions against Russia, which has led to discussions about the country's neutrality status, with Swiss voters set to decide on a proposal for stricter interpretations of neutrality later this month. Russia has criticized Switzerland for its humanitarian aid to Ukraine, indicating a shift in diplomatic relations