Politics
Putin places Nestlé companies in Russia under state control
Russian President Vladimir Putin has taken control of two Nestlé companies in Russia by decree.
On Tuesday, President Vladimir Putin signed a decree placing the two Russian companies of Nestlé, Nestlé Russia and Nestlé Kuban, under state administration. This was reported by Tages-Anzeiger and other media.
According to the decree, L.E.V. (LEV Management) has taken temporary control of the affected assets. This measure targets a Swiss food company that has continued its production in Russia, even during the Ukraine war.
Nestlé remains the formal owner of its Russian companies, but it loses the ability to make decisions regarding them. This means that global operational decisions for the two companies will now be made by the Russian administration.
The move occurs amid a tightening control over foreign assets in Russia, which has increased since the start of the Ukraine war in 2022. According to Deutsche Welle, the Kremlin is taking targeted actions against Western companies operating in Russia.
Critics see this step as part of a broader strategy to pressure Western firms that are labeled as 'unfriendly.' This could affect more companies that have remained in Russia, including others like Auchan and Leroy Merlin.
Switzerland is referred to as an 'unfriendly country' in this context, underscoring Russia's aggressive stance towards Nestlé and other international corporations.