The Russian government is taking over the assets of Western companies\nstill operating within its borders. This time, the Swiss food giant\nNestl\u00e9 and three French business groups have become targets.<\/p>\n
According to AFP, the decision was formalised in a decree signed by\nRussian President Vladimir Putin. The regulation was issued on Thursday\nnight.<\/p>\n
More specifically, the decree transfers Nestl\u00e9\u2019s operations in\nRussia, the French retail chain Auchan, and the former home improvement\nchain Leroy Merlin (now known as Lemana Pro) to a company named LEV\nManagement. The takeover also includes the Russian operations of the\nFrench logistics group FM Logistic.<\/p>\n
According to reports from the investigative media outlet Novaya\nGazeta Europe, LEV Management was only established in late 2025 and is\nled by a general from the Russian Ministry of Internal Affairs. The\ncompany previously had no known business activities.<\/p>\n
This move is the latest policy from Moscow towards Western companies\nin response to sanctions imposed by Western nations on Russia due to the\nwar in Ukraine. Following the Russian invasion of Ukraine, most Western\ncompanies chose to sell their businesses and assets in Russia or at\nleast isolate their operations, as sanctions made trading with Russia\nincreasingly difficult.<\/p>\n
However, Russia has since tightened the process for foreign companies\nexiting the country. The government now requires presidential approval\nfor certain transactions and, in some instances, has directly seized\ncompany assets.<\/p>\n
In response, Nestl\u00e9 stated that it is currently evaluating the\nsituation. \u201cThe company is committed to taking all necessary steps to\nprotect its rights and ensure the continuity of business operations for\nthe benefit of all stakeholders, especially its employees,\u201d Nestable\nsaid. \u201cThe company is assessing the situation and its options,\u201d it\ncontinued, without providing specific details regarding Nestl\u00e9\u2019s\nremaining business in Russia.<\/p>\n
On the other hand, Jean-Philippe Bertschy, an analyst at the Swiss\ninvestment bank Vontobel, believes the financial impact on Nestl\u00e9 is\nlikely to be limited because Russia\u2019s contribution to the group\u2019s total\nsales is relatively small. According to him, Russia currently accounts\nfor just over 1% of Nestl\u00e9\u2019s total sales, a decrease from approximately\n2% before the war in Ukraine.<\/p>\n
Nestl\u00e9 has already halted most sales, non-essential imports,\nadvertising activities, and capital investments in Russia. However, the\ncompany continues to supply a number of food products deemed\nessential.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/nestle-business-hit-by-storm-as-assets-are-seized-1789746743", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }