The Kremlin has seized the assets of Nestlé and the French retailer Auchan in Russia. The step was taken as part of an increase in state control over private companies in the country.
Kremlin spokesman Dmitry Peskov said on Friday (September 18) that Auchan and Nestlé were European companies from unfriendly countries, and that they stand accused of active involvement in the conflict with Russia. A decree issued by the president the previous day announced the seizure of the two companies’ assets.
Under the decree, the Russian assets of Nestlé and Auchan have been placed under the temporary control of the local company LEV Management.
Nestlé, the maker of KitKat chocolate and Nescafé coffee, said it was reviewing the situation and deciding on its next steps. One of the world’s largest food and drink manufacturers, it still has six facilities in Russia, where more than 7,000 people work.
In 2021, the Russian market accounted for about 2 percent of Nestlé’s total sales. Its sales in the country that year came to about 2 billion Swiss francs, equivalent to roughly $2.4 billion.
In a statement, Nestlé said it was committed to taking all necessary steps to protect its rights and keep its business operating, with particular importance given to protecting the interests of its employees. Nestlé’s share price fell 2 percent on the Zurich stock exchange after news of the seizure in Russia.
Auchan sells food, clothing, household goods and electronics in Russia. The company did not respond to a request for comment. According to its website, Auchan has 230 stores in Russia and also operates online. It has about 30,000 employees in the country.