Kremlin Seizes Nestlé Russia Unit as It Also Takes Over Auchan Assets
Updated
Updated · The New York Times · Sep 18
Kremlin Seizes Nestlé Russia Unit as It Also Takes Over Auchan Assets
3 articles · Updated · The New York Times · Sep 18
Summary
A Russian presidential decree issued Thursday put Nestlé’s food business in Russia under temporary external administration, and the company said Friday it was weighing its options.
LEV Management was named to take over the assets, and the same decree also placed French retailer Auchan’s Russian assets under temporary administration.
Nestlé said it would take all necessary steps to protect its rights and keep the business running after the Kremlin’s latest move against Western-owned operations.
Since Russia’s 2022 invasion of Ukraine, Western companies have fled or scaled back, with departures generating more than $100 billion in losses in 2022 and 2023.
Nestlé had already cut back sharply in Russia—halting nonessential trade and capital investment, and suspending most sales there, including KitKat, Nesquik, coffee and pet food.