Putin Orders Nestlé's Russian Assets Into State Control Amid Growing Tensions

Tensions between Russia and foreign companies have grown since the start of the Ukraine war, with many Western firms reducing or selling off their Russian operations. Nestlé, however, continued to operate in Russia even after 2022, maintaining a presence in the country's food sector. Over time, the Russian government increased pressure on Western companies that stayed, signaling that stricter measures could be coming.

On September 18, 2026, Russian President Vladimir Putin issued a decree placing the Russian assets of Nestlé under state control. Reports say this move also affected other Western companies, such as Auchan and Leroy Merlin. According to coverage, the assets have been transferred to a Russian company called LEV Management, which will now oversee the local businesses.

Nestlé responded by announcing it is evaluating the situation and considering legal action to protect its rights. The company has not yet detailed its precise next steps but made clear it does not accept the forced takeover. The Kremlin's action comes after months of uncertainty for foreign firms still operating in Russia, many of whom had already exited or scaled down their activities.

The move signals a broader trend of Russian authorities tightening their grip on Western-owned businesses. This approach has been described as a way for the Kremlin to assert control over key sectors and send a message to companies that have not left the Russian market.

As of now, Nestlé's Russian operations are under the administration of LEV Management, a Russian entity designated by the government. Nestlé is actively reviewing its legal and strategic options, but no concrete actions have been announced yet. Other Western companies targeted by the decree are facing similar uncertainties, and the business environment for foreign firms in Russia has become even more unpredictable.

Nestlé's next steps will be crucial, especially if the company decides to pursue legal action or seek international arbitration. The response from other affected companies and the impact on foreign investment in Russia are also important factors to monitor in the coming weeks.