Nestlé said a presidential decree signed by Vladimir Putin placed Nestlé Russia under temporary external administration, and the company is now assessing its options while promising to protect its rights and maintain business continuity. Nestlé shares fell roughly 2% after the announcement as investors weighed the possibility that temporary administration could lead to a forced sale or outright loss of control. Nestlé operates six factories in Russia producing coffee, pet food and infant formula, and employs around 7,000 people there; the Russian business generated roughly CHF2 billion, about $2.5 billion, of sales in 2021, equivalent to about 2% of group revenue at the time, though analysts now estimate Russia contributes closer to 1% of group sales after Nestlé scaled back operations following Russia's invasion of Ukraine. French retailer Auchan was also caught in the latest decree, while previous interventions have involved Danone and Carlsberg, whose Russian operations were eventually transferred or sold after state intervention. The immediate financial hit is likely manageable given Russia's diminished share of group sales, but the central question is no longer profit but whether Nestlé still controls the assets at all, with the accounting treatment potentially requiring an impairment or other charge.
NVIDIA Corporation
