The Globe and Mail reports in its Saturday edition that Nestle said Friday it is considering all options to protect its rights following the Kremlin's decision to take control of its Russian business, marking another action against a Western company since the Ukraine war began.
A Reuters dispatch to The Globe reports that Nestle said it took note of the decision, announced in a presidential decree on Thursday, and was assessing the situation.
"Nestle 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," the company said in a statement.
It declined to comment further on what action it was considering. Russia has tightened control over foreign-owned assets since the start of the Ukraine war in 2022. A 2023 decree signed by President Vladimir Putin gives Moscow the power to place assets from countries it deems "unfriendly" under temporary administration.
Moscow has also used the law to raise cash through forced sales, exit taxes and discounts, while rewarding Kremlin-loyal insiders.
Nestle said Friday it expects a marginal financial impact "given Russia's limited contribution to group sales."
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