Putin Places Nestlé Assets Under Temporary Management
Russian President Vladimir Putin signed a decree on Thursday. It places stakes in 16 companies under temporary management.
The companies are linked to Nestlé and three French groups. They include Nestlé, Auchan, FM Logistic and Le Monlid.
Le Monlid runs former Leroy Merlin stores in Russia. The decree does not confirm any change in ownership.
Nestlé is now assessing its options. This follows Russia placing its local assets under outside management.
In August, KS Logistika reportedly asked Putin for similar action. It wanted five Nestlé entities placed under temporary management.
Nestlé had not left Russia despite the war. But it stopped new investment there.
It also withdrew some brands and skipped profits. Most Western firms sold Russian operations after Moscow's invasion of Ukraine. Still Russia's government has made leaving the country difficult.
Key Terms 5
- LEV Management Russian company now temporarily managing the seized foreign assets.
- Nestlé Swiss food company that makes KitKat and Nescafé.
- Le Monlid Russian company running stores once owned by Leroy Merlin.
- external administration When a government takes control of a company's local operations.
- KS Logistika Russian company that asked Putin to seize Nestlé's assets.