Nestle Addresses Kremlin's Move to Place Russian Operations Under Administration
Nestle's Response to Russian Government Actions
By John Revill
ZURICH, Sept 18 (Reuters) - Nestle said on Friday it was weighing all options to protect its rights after the Kremlin's decision to take control of the Swiss food maker's business in Russia.
Company Statement and Immediate Actions
The maker of Nescafe coffee and KitKat chocolates said it took note of the decision, unveiled in a presidential decree on Thursday, and was assessing the situation.
Commitment to Stakeholders
"Nestle 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 company said in a statement.
Future Course of Action
It declined to comment further on what action it was considering.
Background: Russian Control Over Foreign Assets
Russia has tightened control of foreign-owned assets since the start of the war in Ukraine in 2022. A 2023 decree signed by Putin gives Moscow the power to place assets from countries it deems "unfriendly" under temporary administration.
Nestle's Presence in Russia
Nestle has six factories in Russia, making coffee, petcare and infant formula products. With 7,000 employees there, it generated sales of about 2 billion Swiss francs in 2021, the last year it released figures.
Other Companies Affected
Auchan's Russian Assets
French supermarket group Auchan was also subjected to Thursday's order, with its Russian assets transferred to the temporary management of L.E.V. Management.
Request for Administration of Nestle's Assets
Earlier, the Kommersant newspaper said a company known as KS Logistika had asked Putin to place Nestle's assets under temporary administration.
Potential Change of Ownership
Kommersant, quoting a source familiar with the matter, said the request covered five Nestle-owned entities in Russia and could, in theory, result in a change of ownership.
(Reporting by John Revill; Editing by Friederike Heine and Clarence Fernandez)