Russia takes control of two Nestlé subsidiaries

Two Nestlé subsidiaries have been placed under Russian management, bringing the Swiss food group into a system that has steadily tightened state control over foreign-owned assets. A decree signed by President Vladimir Putin on Thursday, September 17, 2026, transferred management of Nestlé Russia and Nestlé Kuban to the Russian company LEV Management. The same order applies to subsidiaries of French supermarket group Auchan.

The decree leaves legal ownership formally unchanged. Operational control has shifted, however, and Nestlé cannot currently make decisions about the affected holdings. The arrangement gives a Russian-appointed manager influence over assets, personnel and commercial activity while the Swiss parent company remains exposed to the consequences.

Nestlé has not said how the decree will affect production, distribution or its other Russian operations. When contacted by the AWP news agency, a company spokesperson was initially unable to provide details on the exact consequences.

The move follows an August request from Russian company KS Logistika, which urged Putin to place five Nestlé subsidiaries under external administration. Nestlé said at the time that Russian authorities had not contacted it. The latest decree shows how quickly a commercial dispute or local pressure can become a presidential decision.

Russia represents around 2% of Nestlé’s group turnover, a limited share at global scale but a substantial operating footprint on the ground. The company runs six production sites in the country, making coffee, confectionery, baby food and pet food for the local market. Those factories connect Nestlé to Russian employees, suppliers, retailers and consumers even as political control over foreign companies expands.

Nestlé continued operating after Russia’s full-scale invasion of Ukraine in February 2022. The group argued that it wanted to maintain supplies of essential food products, a position that drew criticism in Switzerland and elsewhere. The company has also said that a withdrawal from Russia was not on the cards.

The new administration order puts that policy under pressure. Nestlé may retain ownership on paper while losing the practical ability to direct its subsidiaries. The distinction matters for corporate reporting, supply decisions and any future sale. It also creates uncertainty over whether the group can protect trademarks, transfer profits or determine the use of production capacity.

For Swiss observers, the case highlights the exposure created by keeping local operations in a market where political authorities can intervene directly. Food products may have been treated differently from sectors targeted by sanctions, yet the company’s operating rationale has not shielded its assets from state action.