Russia takes over Nestlé assets as crackdown on private firms expands

The Kremlin has seized the Russian assets of Swiss food giant Nestlé and French retailer Auchan as Moscow expands its control over private businesses.

According to CNN, a presidential decree placed both companies’ assets under the temporary management of domestic firm L.E.V Management.

Kremlin spokesperson Dmitry Peskov described Nestlé and Auchan as European companies from “unfriendly countries.” Nestlé, which operates six sites and employs more than 7,000 people in Russia, said it was assessing its options and would take necessary steps to protect its rights.

Auchan operates 230 stores and employs about 30,000 people in Russia.

Moscow has tightened control over foreign businesses since invading Ukraine in 2022, previously taking control of Russian subsidiaries belonging to Danone and Carlsberg under similar measures.