The Kremlin has moved to seize the Russian assets of Nestlé and French retailer Auchan amid a broader nationalization drive that has seen a surge in government takeovers of private companies.
Auchan and Nestlé are “European companies from unfriendly countries… currently actively involved in hostilities against us,” Kremlin spokesperson Dmitry Peskov told reporters Friday, a day after a presidential decree announced the measures. Both companies’ assets have been placed under the temporary control of the domestic firm L.E.V Management, according to the decree.
Nestle, the maker of KitKat chocolates and Nescafe coffee, said it was assessing its options. The world’s largest food and beverage company still operates six sites in Russia, employing more than 7,000 people. Its sales in the country accounted for 2% of group sales in 2021, the last year it reported figures, equal to around 2 billion Swiss francs ($2.4 billion).
“Nestlé 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. Nestlé’s shares fell 2% in Zurich.
by CNN – Kremlin seizes Nestlé’s assets in Russia as crackdown on private business grows
