Nestlé announced on Friday that it is evaluating its options following the Kremlin’s decision to place its Russian assets under temporary external management.
“Right now, we’re talking specifically about introducing external management; no other decisions have been made yet,” Kremlin spokesperson Dmitry Peskov said on Friday, according to news agency RIA Novosti.
Nestlé noted the presidential decree, published on Russia’s official legal portal on Thursday, and said it is currently assessing the situation.
The statement read;
“Nestlé takes note of Russia’s presidential decree, published yesterday, that places Nestlé Russia under temporary external administration. The company is assessing the situation and its options.
Nestlé 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.”
President Vladimir Putin’s sudden action is generally viewed as an initial step to transfer assets to investors connected to the Kremlin. It also forms part of a larger initiative to restrict Western companies that remain operating in Russia during the Ukraine conflict.
Nestle shares fell 2.2% on Friday after the announcement.
By CEO NA Editorial Staff
