The Russia-based assets of retail food and logistics companies, including Nestlé, have been transferred to the management of Ministry of Interior General Andrey Krayushkin, under a presidential decree, according to several sources.
Russia’s president Vladimir Putin signed a law transferring the shares and assets, but not the ownership of Nestlé, to the “temporary management” of JSC L.E.V. Management, owned by Krayushkin, on 17 September.
The other companies whose assets have been transferred are French food retailers and logistics companies Auchan, Lemana PRO, Bati Logistics and FM Logistic.
A Kremlin spokesperson claimed the move was in response to “unfriendly countries” that were engaged in military action against Russia, without providing any direct evidence.
According to the RBC Company, JSC L.E.V. Management was established in 2024, but its chief executive Krayushkin took over the company on 10 September, a week before the presidential decree was issued, according to The Canmaker’s sources.
In a statement released after the presidential decree was issued, Nestlé said it was assessing the situation and its options.
The company stated: “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.”
International media have reported that the Swiss Government is working with Nestlé’s “top management” to return the assets to its owners.
Nestlé’s 2025 revenue in Russia was estimated at RUB258 billion (USD3.05bn).
Independent analysts have suggested that as Nestlé has not paid any dividends to Western-based shareholders of the assets for a long time, these entities have a lot of cash.
According to Roman Belanov, a member of the Moscow Bar Association and law firm Plesovskikh & Partners, Nestlé’s main option to resolve the issue is diplomatic channels.
Nestlé’s board will not be able to exercise its rights as shareholders, vote at meetings, receive dividends, or make any decisions on the board.
Nestlé has been operating in Russia since 1994 and owns several production facilities. After Russia invaded Ukraine in 2022, the company suspended investments in advertising and the production of several products, including Nespresso, San Pellegrino, KitKat, and Nesquik, but continued to supply baby food, cereals, and some pet food.
