Nestle weighs options after Putin moves to seize Russian assets

Key Points:

• Nestlé is evaluating its options after the Kremlin issued a decree to place the Russian assets of its business under temporary external administration, signaling potential transfer to Kremlin-friendly investors amid tensions from the Ukraine war.
• The Russian presidential decree also targets French retailer Auchan and Lemana Pro, with their assets set to be transferred to a shell company called L.E.V. Management, reflecting a broader move against Western companies in Russia.
• Kremlin spokesperson Dmitry Peskov clarified that the current action involves introducing external management, with no further decisions made yet, under a 2023 decree allowing Moscow to control property of entities from "unfriendly" countries.
• Russia has previously taken control of local units from numerous Western companies, including Carlsberg, Danone, and Fortum, as part of its efforts to assert control over foreign businesses amid ongoing geopolitical conflict.
• Switzerland, though not an EU member, has aligned with EU sanctions against Russia, leading to increased scrutiny of its neutrality stance, with Russian officials criticizing Switzerland for its humanitarian aid to Ukraine and no longer viewing it as neutral.