Putins Günstlinge sprechen bereits in Nestlés Namen: Dem Schweizer Konzern droht in Russland das Danone-Drehbuch

The Swiss food giant Nestlé found itself under Russian control through a forced management system ordered by President Vladimir Putin. This news caught the world by surprise on September 18th, as the situation for Nestlé in Russia seemed unchanged since the 2022 Russian invasion of Ukraine. Nestlé, a manufacturer of staple foods, remained operational in the country even during the war.

An early week announcement of a supposed clearance seemed to suggest that Nestlé would continue its Russia business "in full compliance" with its obligations to customers, partners, and employees, all under the new Russian manager, L.E.V. Management. However, this was nothing more than Russian propaganda, as the Nestlé headquarters in Vevey was not meant to be part of the relief, according to the company's media department.

The episode reveals that Nestlé's central control over its six factories in Putin's realm had already been lost. Nestlé's Russia business is still not abandoned, though, and the company is currently assessing the situation and potential courses of action. The Swiss State Secretariat for Economic Affairs (Seco) and the Department for International Affairs (EDA) are assisting Nestlé "through diplomatic channels" to protect its rights, with the aim of allowing Nestlé to express its stance to Russian authorities and influence the withdrawal of forced management.

Experts suggest that the company has two options: to challenge the forced management in a Russian or international court and fight to stay in Russia, or to exit the Russian market. Matthias Scherer, a partner at Lalive, a leading law firm specializing in cross-border disputes, recommends documenting the disadvantages imposed by Russia's actions and identifying individuals benefiting from the forced management and potential confiscation.

A similar fate may await Nestlé as it did with its French competitor Danone, which saw its Russia business sold for around 180 million euros to new Russian owners in 2024, despite initially claiming it was a voluntary sale. Danone then incurred a loss of over 1 billion euros related to its Russia exit. Current observers believe it's possible that Nestlé may face the same consequences as Danone in Russia, with the company's 270,000 employees, including around 7,000 in Russia, potentially needing to document the negative impacts of Russia's actions and identify those profiting from the forced management.