Nestle reviewing options after Russia business seized by Putin

KitKat maker Nestle has said it is considering options after its Russian business was seized by president Vladimir Putin and placed in temporary administration.

Mr Putin made a presidential decree late on Thursday to take control of Nestle’s Russian assets, alongside those of French supermarket chain Auchan.

It is thought to mark the Kremlin’s largest takeover of foreign corporate assets since at least 2024.

Swiss food giant Nestle – which makes a raft of household food brands also including Nescafe and Cheerios – said on Friday it was “assessing the situation and its options”.

The firm said: “Nestle is committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees.”

The move by Russia comes amid mounting tensions with Europe.

More than 1,000 firms left Russia in the exodus that followed the country’s invasion of Ukraine in 2022, though some big names have remained in the country such as Cadbury owner Mondelez and PepsiCo.

Russia changed laws to be able to take control of shareholdings owned by firms deemed to be “unfriendly” and has already used this against companies including Carlsberg, Danone and Stella Artois and Budweiser brewer AB InBev.

Nestle has run businesses in Russia since 1995 but has trimmed its operations there since the war with Ukraine started.

It has six manufacturing sites and around 7,000 workers in Russia.

Nestle’s Russian business is thought to make around two billion Swiss francs (£1.81 billion) in revenues every year – about 2% of the group’s global annual sales.