Putin was unable to explain why Russia had punished the Swiss company Nestlé
Russian President Vladimir Putin was unable to cite a specific reason why Moscow placed the Swiss company Nestlé’s Russian assets under temporary administration. In response to a question from a Swiss journalist, he said that Russia was allegedly “not punishing anyone,” but merely responding to the actions of other countries. At the same time, the Kremlin had previously explained the decision regarding Nestlé by citing the company’s affiliation with a so-called “unfriendly country.”
During a plenary session of the Valdai Club, Vladimir Putin was asked about Russia’s decision to place the assets of the Swiss company Nestlé under temporary administration. A Swiss journalist inquired as to why exactly Moscow had decided to take action against the company. The question was particularly relevant because, after the start of the full-scale war, Nestlé did not completely withdraw from the Russian market and continued to operate there.
Putin was unable to name specific actions by Nestlé or Switzerland that led to the decision. He said he did not recall the details. “As for Nestlé, we are not punishing anyone at all. We are simply responding to the actions taken against us. I don’t think I remember the details right now; I don’t know, but I think that’s the whole point. Certain decisions were made regarding the Russian Federation, and the Russian Federation is responding accordingly. And that’s all. We’re not attacking anyone,” Putin stated.
In other words, the Russian president did not provide a specific answer to the journalist’s question. He did not specify exactly which decisions regarding Russia were in question or which of them Moscow considers grounds for transferring Nestlé’s assets under the control of a Russian company.
At the same time, the decision regarding Nestlé was made back in September. On September 17, Putin signed a decree transferring the stakes in two Russian subsidiaries of the Swiss conglomerate—Nestlé Russia and Nestlé Kuban—to the management of the Russian company L.E.V. Management. Nestlé formally remains the owner of the assets but has lost the ability to independently manage these stakes.
At the time of the decision, Nestlé remained one of the major Western manufacturers still operating in Russia. The company did not completely cease its operations there after Russia’s full-scale invasion of Ukraine began in 2022. Nestlé has six production sites in Russia. The Kremlin attributed the transfer of assets not to specific actions by Nestlé itself, but to a broader conflict with Western countries. Putin’s press secretary, Dmitry Peskov, stated that one of the factors was that the company comes from a so-called “unfriendly country.” According to him, such states are allegedly actively involved in actions against Russia.
Putin was also asked why Russia has recently been transferring the assets of several large Western companies at once to external management. Among them, in addition to Nestlé, were the French company Auchan and the assets of the former Leroy Merlin, which now operates in Russia under the name “Lemana PRO.”
Responding to a previous question about these decisions, Putin linked Russia’s actions to Russian assets frozen abroad. He stated that Moscow is allegedly acting on the principle of reciprocity and is prepared to respond to the possible nationalization or seizure of Russian property. “We are creating conditions for ourselves under which, in the event of nationalization or, in other words, the plundering of our companies, we would be able to respond in kind,” Putin said.
He also mentioned the Russian Central Bank’s reserves frozen in Europe and the situation involving the Russian companies Gazprom, Rosneft, and Lukoil. According to the Russian president, it is precisely these actions by the West that Moscow uses as justification for its own decisions regarding Western businesses. The decision regarding Nestlé is part of a broader Russian campaign against the assets of European companies. Reuters reported that in late September, the assets of Germany’s Metro were also placed under temporary administration, and similar measures had previously been applied to other European companies.
Meanwhile, Nestlé stated that it is assessing the situation and considering possible next steps. The company also emphasized that the transfer of shares to L.E.V. Management does not in itself imply a change in ownership.
Thus, when asked about Nestlé, Putin did not cite a specific reason why Russian authorities decided to take control of the company’s assets. Instead, he reiterated Moscow’s general position regarding a “response” to the West’s actions. Officially, the Kremlin had previously explained the decision regarding Nestlé by stating that the company originates from a country that Russia considers “unfriendly.”
Russian state-run and pro-government media outlets have received guidelines on how to cover the 2027 draft budget. Journalists are advised to focus on pensions, social benefits, schools, and kindergartens, but to avoid reporting on the sharp increase in defense spending and cuts to funding for a number of civilian sectors.
