Nestlé Reviews Its Options After Russia Places Local Business Under Temporary Administration
Zurich, September 18, 2026: Swiss food and beverage giant Nestlé is assessing its options after Russia placed the company’s local business under temporary external administration, adding another layer of uncertainty for Western companies that continue to operate in the Russian market.
Nestlé said on Friday that it had taken note of a presidential decree issued in Russia and was evaluating the situation. The company said it would take necessary steps to protect its rights and maintain business continuity while considering the interests of its stakeholders, particularly employees.
Russian Operations Placed Under Temporary Control
The Russian presidential decree transferred Nestlé’s Russian assets to temporary management by L.E.V. Management.
The measure also affected French supermarket group Auchan, whose Russian assets were similarly transferred to temporary management.
Russia introduced the legal mechanism for temporary administration of assets belonging to companies from countries it considers “unfriendly.” The system has previously been used in cases involving other major Western businesses.
Nestlé Maintains Significant Local Operations
Nestlé has maintained a substantial presence in Russia despite reducing some activities since the start of the war in Ukraine.
Reuters reported that the company operates six factories in the country, producing products including coffee, pet-care items and infant formula. Nestlé employed around 7,000 people in Russia and reported approximately 2 billion Swiss francs in Russian sales in 2021, the last year for which it publicly disclosed that figure.
The company has previously said that its continued presence in Russia was linked partly to the production of essential food products.
Uncertainty Over Future Ownership
The temporary administration has raised questions about the future of Nestlé’s Russian assets.
Reuters reported that a Russian company called KS Logistika had previously requested that Nestlé’s assets be placed under temporary administration. The request reportedly involved five Nestlé-owned entities, although Reuters said it could not independently verify some of the information reported by the Russian newspaper Kommersant.
In previous cases involving Western companies, temporary administration has been followed by changes in ownership or forced sales. However, Nestlé has not announced that it is selling its Russian operations.
Company Says It Is Assessing Its Options
Nestlé has not disclosed what legal, financial or operational steps it may take in response to the decree.
Its official statement said the company is assessing the situation and its available options while seeking to protect its rights and maintain continuity of operations.
The development leaves the future structure of Nestlé’s Russian business uncertain as the company evaluates the implications of Moscow’s decision.
Broader Impact on Western Businesses
The move comes as Russia continues to exercise greater control over assets owned by companies from countries classified by Moscow as unfriendly.
Several major Western companies have previously faced Russian intervention in their local businesses. The latest action involving Nestlé and Auchan demonstrates that foreign companies retaining operations in Russia continue to face regulatory and ownership risks.
For Nestlé, the immediate focus is now on assessing the decree, protecting its legal and commercial interests and determining how its Russian operations can continue under the new management arrangement.
