Nestlé to continue Russian operations despite state administration

Nestlé has announced its intention to continue commercial activities in Russia despite a presidential decree by Vladimir Putin placing Nestlé Russia and Nestlé Kuban under temporary external administration. The assets have been transferred to the control of AO L. E. V. Menedzhment.

The Kremlin stated the decision was influenced by hostile actions from unfriendly countries. While the company has lost immediate control over its holdings, Nestlé maintains that the move does not constitute a change in ownership or nationalization. The group stated it is assessing its options and remains committed to fulfilling all obligations to its employees, partners, and clients.

Nestlé operates six production sites in Russia with approximately 7,000 employees. As of 2021, its Russian sales accounted for roughly two billion Swiss francs, representing about two percent of its global sales. Observers note that similar administrative measures were previously applied to companies like Danone and Carlsberg before their Russian operations were transferred to local owners.