Nestle Russia Vows to Keep Operating After Kremlin Asset Transfer

Nestle's Russian subsidiary has said it will keep operating in the country and meet all its commitments, after a presidential decree placed its Russian assets under temporary control.

The company's Russian press service said the group was continuing its commercial activities in full and intended to unconditionally fulfil its obligations to clients, partners and employees.

The decree, signed on Friday, also covered the Russian assets of French retailer Auchan. Both were handed to temporary control by L.E.V. Management, a little-known company with no public profile.

Nestle said the move did not amount to nationalisation or a change of ownership. It expressed confidence that working with the team at L.E.V. Management would help it continue to grow and improve efficiency.

After the decree was announced, the maker of Nescafe coffee and KitKat chocolate bars said it was 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.

The Kremlin said hostile actions by "unfriendly" countries played a role in its decision to take control of the Russian assets of Nestle and Auchan.

In previous cases, temporary administration has often been followed by state expropriation, with assets later transferred to Kremlin-linked individuals or companies. Kremlin spokesman Dmitry Peskov said only temporary administration was under consideration for now.