Kremlin seizes Nestlé's Russian assets; Nestlé says it will assess and take action

Chris Price Fri, September 18, 2026 at 2:52 AM PDT 3 min read

Nestlé has stated it is assessing its options after Russian President Vladimir Putin ordered the seizure of its Russian business.

The KitKat maker indicated it would take action to protect its rights following the Kremlin’s announcement of a presidential decree taking control of the Swiss company’s assets on Thursday.

In a statement to shareholders, Nestlé said:

"The company is assessing the situation and its options. Nestlé 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."

Background

Russia has tightened control over foreign-owned assets since the start of the Ukraine war in 2022. A 2023 decree signed by Putin grants Moscow the authority to place assets from countries it deems "unfriendly" under temporary administration. This mechanism has previously been used to take control of the Russian subsidiaries of Danone and Carlsberg.

Market Reaction

Nestlé shares fell 1.7% on Friday following the Kremlin’s order, which also placed the Russian business of French supermarket group Auchan into temporary administration. The decree additionally covers the Russian subsidiaries of French logistics group FM Logistic and the former Leroy Merlin DIY chain, now known as Lemana Pro.

The assets of each company have been transferred to a firm called LEV Management.

Nestlé’s Operations in Russia

• Operates six factories in Russia, producing coffee, pet care, and infant formula
• Generated approximately 2 billion Swiss francs (£1.8 billion) in sales in Russia in 2021 (the last year it released figures)
• Employs about 7,000 people in the country

Analyst Perspectives

Warren Ackerman, analyst at Barclays, said the Kremlin’s order means the "risk of Nestlé losing the business looks materially higher."

Jean-Philippe Bertschy of Swiss investment bank Vontobel said he expects the financial impact to Nestlé to be small, "given Russia’s limited contribution to group sales." He noted that Russia now accounts for just over 1% of the group’s sales, down from around 2% before the Ukraine war. Nestlé has suspended "the vast majority of sales, non-essential imports, advertising and capital investment," while continuing to supply essential food items.

Jon Cox, a Kepler Cheuvreux analyst, said previous experiences did not bode well for Nestlé:

"Ultimately, Nestlé may end up losing those assets – around 2% of its sales and cash tied up in Russia – for the foreseeable future and any compensation is unlikely to be an offset."

Precedent Cases

• Danone: Removed from the list of assets under temporary Russian state management in March 2024, amid reports that a Russian businessman known for his pro-war credentials planned to buy the business at a steep discount.
• Carlsberg: Sold its shares in Baltika Breweries in a management buyout in December 2024.

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