Kremlin seizes Nestlé’s assets in Russia as crackdown on private business grows

Key Points:

• The Kremlin has seized the Russian assets of Nestlé and French retailer Auchan as part of a broader nationalization effort targeting companies from countries deemed "unfriendly" amid the ongoing conflict with Ukraine.
• Both companies' assets are now under the temporary control of the Russian firm L.E.V Management, following a presidential decree aimed at consolidating government control over foreign-owned businesses.
• Nestlé, which operates six sites in Russia with over 7,000 employees, is assessing its options and emphasized its commitment to protecting employee interests, while Auchan, with 230 stores and 30,000 employees, has not commented on the seizure.
• Since the 2022 invasion of Ukraine, Russia has intensified its takeover of foreign firms, previously seizing companies like Danone and Carlsberg, and is also increasingly nationalizing domestic enterprises by revisiting privatization deals from the 1990s.
• The move comes ahead of Russia's parliamentary elections, where President Putin's United Russia Party is expected to secure a strong majority, further consolidating state power amid the ongoing geopolitical tensions.