Nestlé’s russian assets are at risk of nationalisation

In the aggressor state, the russian federation, proceedings may be initiated to change the ownership of the assets of Nestlé, one of the world’s largest food producers. This was reported by the russian publication Kommersant, citing sources.

The sources stated that the company ‘KS Logistics’ had asked russian dictator Vladimir Putin to impose temporary administration on Nestlé’s russian legal entities. The companies in question are Nestlé russia LLC, Nestlé Kuban, Cereal Partners Rus, TsPB Nestlé and Atrium Innovations Rus. The company justifies the request by citing a lack of plans to expand production capacity and the cessation of exports of goods manufactured in russia.

The decision to implement temporary administration does not imply the seizure of assets, but may be the first step in the process of changing the company’s ownership. The russian government is to assess the feasibility of this move by the end of the year.

According to Kommersant, Nestlé’s business in russia is valued at 160–170 billion roubles ($1.88–$2.00 billion).

In early 2023, Nestlé announced that it was halting all investment in russia and the supply of most of its products to the country, and also withdrew the KitKat and Nesquik brands from the russian market.

Source: LIGA.net