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Nestlé Weighs Options After Russia Places Units Under Administration

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Nestlé Weighs Options After Russia Places Units Under Administration

Nestlé (NESN.SW) said Friday that it is assessing its options after Russia decided to take control of the company's operations in the country.

Russian President Vladimir Putin signed an order placing the Swiss food and beverage group's local assets under temporary external administration. The presidential decree, released Thursday, affects 100% of the shares in Nestlé Russia and Nestlé Kuban, the company's two Russian operating subsidiaries.

The same decree also placed France-based supermarket chain Auchan's Russian assets under administration.

Nestlé said it took note of the decision and 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," it added.

The Kremlin seized the operations under a 2023 law approved by Putin that allows the government to place assets of companies from countries deemed "unfriendly" to Russia under temporary administration.

Shares in Nestlé were down 2% in Zürich.

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