Kremlin seizes control of Nestle's Russian operations
Russia placed Nestle's Russian business under temporary government control, affecting about 7,000 employees.
The Kremlin has taken control of Nestle's Russian operations. About 7,000 people worked there.
In 2021, it made roughly 2 billion Swiss francs (A$3.4 billion) in sales. A presidential order made this happen.
Six factories produce coffee, pet food, and infant formula. Nestle said it is looking at its options.
It promised to protect its employees. This is like a 2023 Putin order that gave Moscow power over assets from unfriendly countries.
French supermarket chain Auchan was also targeted the same day. It runs 230 stores in Russia and employs about 30,000 people.
Kremlin spokesman Dmitry Peskov said politics was a factor. He claimed Switzerland and France were involved in military actions against Russia.
- 7,000
- Employees affected
- 2 billion Swiss francs
- 2021 sales
- 6
- Nestle factories in Russia
- 230
- Auchan stores in Russia
Why it mattersWestern companies now face more risk in Russia. The government may seize their assets. This is because of the war in Ukraine.
AustraliaAustralian consumers may eventually see price changes or availability shifts in Nestle products if the company restructures its supply chains.
✓ Claims checked against the source. checked 6 d ago
