Russia has moved to seize the domestic assets of food giant Nestlé and French retailer Auchan as the Kremlin expands its control over private companies.
The assets have been placed under the temporary control of Russian firm L.E.V Management under a presidential decree announced Thursday.
Kremlin spokesperson Dmitry Peskov described Nestlé and Auchan as “European companies from unfriendly countries… currently actively involved in hostilities against us,” according to CNN.
Nestlé, which makes KitKat and Nescafe, and operates six sites in RUssia with more than 7,000 employees, said it was reviewing its options.
“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,” the company said in a statement.
The Swiss company’s shares fell two percent in Zurich following the announcement.
Auchan operates about 230 stores in Russia and employs around 30,000 people, according to its website.
Russia has increased its control over foreign-owned businesses since its 2022 invasion of Ukraine. A decree signed by President Vladimir Putin in 2023 allowed authorities to temporarily take control of assets belonging to companies from countries Russia considers “unfriendly.”
