Nestle weighs all options after Kremlin moves to seize Russian business

Nestle shares experienced a decline of 1.5% in early trading in Zurich following the Kremlin's decision to take control of the Swiss food maker's Russian business. The company has been assessing the situation and is committed to taking necessary steps to protect its rights and ensure business continuity. Nestle is one of six factories in Russia producing coffee, petcare and infant formula products, generating sales of about CHF2 billion ($2.4 billion) in 2021, accounting for around 2% of the company's total sales.

Russia's temporary administration law, signed by President Vladimir Putin in 2023, has been used to seize assets from unfriendly countries, with Moscow reportedly using the law to raise funds through forced sales, exit taxes, and discounts. Other Western companies have also faced similar situations, with some choosing to sell their Russian assets or hand them over to local managers to comply with sanctions or respond to threats of asset seizure.