Russian firm seeks State control of Nestlé assets

A Russian company has submitted a request to President Vladimir Putin to place Nestlé Group's assets in Russia under temporary government management, a move that could lead to a change in ownership. The note covers five subsidiaries of the group, and the request is attributed to Nestlé's decision to halt its expansion in production and freeze exports from its local factories, despite the company's assurance of continuing operations and compliance with Russian regulations. Nestlé's assets in the Russian market are estimated to be worth between $1.9 billion and $2.1 billion, including assets, trademarks, and undistributed profits. This comes in the context of a Russian decree granting the government the authority to place the assets of "unfriendly" companies under temporary management, a measure that has previously been applied to other companies in Russia.

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