Nestlé is evaluating legal options after Moscow seized its Russian business, joining a growing list of Western firms facing state-mandated administration of their local assets.
Kremlin ordered seizure of Nestlé's Russian business, causing a 1.7% share drop and materially higher risk of losing the unit.
The Kremlin put Auchan's Russian business under temporary administration in the same decree.
FM Logistic's Russian subsidiary was transferred to temporary state administration by the presidential decree.
The former Leroy Merlin DIY chain Lemana Pro also had its Russian assets placed under temporary administration.
Danone is referenced as a prior example of a company whose Russian business was temporarily seized and later removed from state management.
Carlsberg is cited as a prior case where the Russian stake was ultimately sold via a management buyout after seizure.
Nestlé shares fell 1.7% after the Kremlin issued a decree placing the Swiss food giant's Russian operations under temporary state administration. The move, which also impacts French firms including Auchan and FM Logistic, significantly elevates the risk of permanent asset loss for foreign investors in Russia.
The decree allows the Russian state to take control of assets owned by companies from 'unfriendly' nations, effectively stripping the owners of management control and often leading to forced sales or permanent loss.