Russia has unexpectedly seized Nestlé's operations in the country, in a new round of pressure on Western companies four years after the start of the Ukraine war.
Nestlé said Friday that it was assessing its options for its Russian unit, a day after the Kremlin placed the assets under temporary external administration. A presidential decree Thursday also targeted the Russian operations of French retailers Auchan and Leroy Merlin.
The asset seizures are the latest moves by Russia to take over local units of foreign companies from countries Moscow sees as unfriendly. Russian officials have previously said that such seizures are in retaliation for similar moves by Western countries.
Russia in 2023 seized the assets of food maker Danone and brewer Carlsberg, as well as utilities owned by Germany's Uniper and Finland's Fortum. France's Danone and Denmark's Carlsberg later sold their Russian operations in 2024, taking financial hits to exit the country in a bid to resolve the uncertainty.
Nestlé said Friday that it was "committed to taking all necessary steps to protect its rights and ensuring continuity of business operations."
Auchan and Leroy Merlin owner Adeo Group didn't respond to requests for comment.
Nestlé maintained a presence in Russia after Moscow started its war on Ukraine in 2022, though did scale back its operations amid pressure from politicians, employees and consumers. The Swiss company said early in the war that it would suspend production of pet food, coffee and confectionery, and instead focus on essential items like baby food and medical-nutrition products.
Nestlé had six factories in Russia in 2025, according to its latest annual report. The company hasn't given a value for the unit, which analysts say accounted for about 2% of sales before the war.
Nestlé's situation in Russia is similar to the one Danone experienced back in 2023, and throws into question the value that could be extracted from a potential sale of its Russian assets, analysts at J.P. Morgan wrote in a note to clients.
U.K. consumer-goods company Reckitt Benckiser earlier this year said it agreed to sell its hygiene arm in Russia to Arnest Management for an undisclosed sum, but retained ownership of its local consumer-health business.
Arnest, a Russian maker of perfume, cosmetics, and household products, also bought the Russian business of U.K. consumer-goods group Unilever in 2024.
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