Nestle said it is assessing options for its Russian unit after Moscow transferred control to external administrators, in the latest move by the Kremlin to seize the local assets of international conglomerates. Russia placed Nestle Russia, as well as the businesses in the country of French retailers Auchan and Leroy Merlin, under temporary external administration, according to a presidential decree published Thursday. Nestle is 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, the Swiss food maker said Friday.

Auchan and Leroy Merlin owner Adeo Group didn't respond to requests for comment. Russia unveiled in 2023 a decree that allowed the state to take temporary control of assets of companies or individuals from countries that Moscow deems "unfriendly." The Russian government used it to seize the assets of food maker Danone and brewer Carlsberg, as well as utilities owned by Germany's Uniper and Finland's Fortum. France's Danone and Denmark's Carlsberg completed the sales of their respective Russian operations in 2024, taking financial hits to exit the country in a bid to end the uncertainty created by the seizure of their assets by local authorities.

Nestle's situation in Russia seems similar to what Danone experienced back in 2023, and throws into question the value that could be extracted from a potential sale of its Russian assets, analysts at J. P. Morgan wrote in a note to clients.

Like other international consumer-goods companies, Nestle maintained a presence in Russia after Moscow started its war on Ukraine in 2022, but moved to scale back its operations there after facing pressure from politicians, employees and consumers. Nestle had six factories in Russia in 2025, according to its latest annual report. U.K. consumer-goods company Reckitt Benckiser earlier this year said it agreed to sell its hygiene arm in Russia to Arnest Management for an undisclosed sum, but retained ownership of its local consumer-health business. Arnest, a Russian maker of perfume, cosmetics, and household products, also bought the Russian business of U.K. consumer-goods group Unilever in 2024.