Russia Seizes Control of Nestle and Auchan Assets Citing 'Hostile' Countries
Russia has announced it will take control of the Russian assets of Swiss food giant Nestle and French retailer Auchan, citing hostile actions by 'unfriendly' countries.
The move is part of a broader trend of Russia tightening its grip on foreign-owned assets since launching its invasion of Ukraine in 2022. A 2023 decree signed by President Vladimir Putin allows assets from countries Moscow deems 'unfriendly' to be placed under temporary administration.
Nestle, which has six factories in Russia producing coffee, pet care, and infant formula products, generated sales of about 2 billion Swiss francs ($2.4 billion) in Russia in 2021 and employs around 7,000 people there. The company suspended most sales and non-essential imports in Russia in response to sanctions.
Auchan, which runs 230 stores and an online business in Russia, employing about 30,000 people, declined to comment on the development. Analysts estimate that Russia's contribution to Nestle's group sales has declined from around 2% in 2021 to less than 1% since the company scaled back operations in the country.