putin signed a decree putting Nestlé russia under state administration, but the local subsidiary says the move is neither nationalisation nor a change of owner.

Nestlé insists there has been no «change of ownership» in its russia business despite the kremlin placing the Swiss giant’s local assets under «temporary administration», Just Food reports.

In a statement on 21 September, the Nestlé Group of Companies in Russia confirmed shares in its authorised capital had been «transferred» to the temporary management of russian joint-stock company LEV Management. Nestlé added that «this action does not constitute nationalisation of the company or a change of ownership» in its russian subsidiary.

The statement followed a decree signed by russian president vladimir putin the previous week, placing Nestlé russia and Nestlé Kuban under state-directed administration; the interests of Société des Produits Nestlé and Nestlé Deutschland would be managed by LEV Management.

«Full commercial operations» continuing

Nestlé said its «full commercial operations» in russia continue and pledged to «unconditionally» fulfil obligations to customers, partners and employees. The subsidiary expressed confidence that cooperation with LEV Management would contribute to the company’s «further development and improve its operational efficiency».

The conciliatory tone of the local unit contrasts with Nestlé’s initial response after the decree — when the Nescafé and KitKat owner said it was «assessing the situation and its options» and «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».

russia presence since the Ukraine invasion

Nestlé has maintained a presence in russia since the 2022 invasion of Ukraine. Its 2025 annual report said it operated six factories in russia producing dairy products, powdered drinks, confectionery, prepared dishes and pet food.

The Danone and Carlsberg precedent

russia previously used temporary-administration measures against Danone and Carlsberg in 2023. Danone sold its local assets in 2024, booking a €1.2bn (~$1.38bn) loss. 

Source: Just Food