Overview
- The Kremlin published a decree that placed Nestlé’s Russian businesses under temporary external administration and transferred operational control to L.E.V. Management.
- The decree, published Thursday, names L.E.V. Management as the interim manager even though reporting shows the company had little prior activity and is led by Andrei Krajuschkin, a figure linked to the Interior Ministry.
- Nestlé says it retains legal ownership, was not contacted before the filing, is evaluating legal remedies, and intends to keep its six Russian factories and thousands of staff operating.
- Analysts estimate Russia accounts for roughly 1–2% of Nestlé’s global sales so the immediate financial hit is likely limited but past cases show temporary administration often leads to de facto transfers to Russian buyers and poor compensation for foreign owners.
- The move also affects other Western firms including Auchan and the former Leroy Merlin unit and could trigger prolonged disputes over ownership, employee security, and the fate of locally produced food and supply chains.