Swiss authorities reported on diplomatic assistance to Nestle on assets in Russia

Switzerland’s State Secretariat for Economic Affairs and the country’s Federal Department of Foreign Affairs announced support for Nestlé “through diplomatic channels.” Neue Zrcher Zeitung (NZZ) am Sonntag reported. They help the company to convey its position to the Russian leadership and cancel temporary management.

Nestle itself is studying possible actions after the transfer of its Russian business to the interim management of L.E.V. Management. Nestlé’s headquarters said it would take “all necessary steps” to protect its rights.

After the transfer of the business, the Russian structure of Nestlé Russia said it would continue to work and perform duties to customers, partners and employees. The Swiss headquarters told NZZ that the reports did not agree with it and reflected the “position of the interim external administration.”.

In a comment to NZZ, Vasily Astrov, an expert at the Vienna Institute for International Economic Research, admitted that Nestle could repeat the fate of Danone’s Russian assets. In 2023, they were transferred to temporary management, later sold to a new owner. According to experts, Nestle may try to challenge the external management in a Russian court or an international arbitration tribunal.

Russian assets of Nestlé were transferred to the temporary management of L.E.V. Management by presidential decree on September 17. At the same time, L.E.V. transferred the Russian assets of Leman ABM, Auchan and FM Logistic. All of them changed their general managers. The new general director of "Ashana" was Ilya Berdnikov, "Lemana PRO" - Denis Isayev, FM Logistic - Evgeny Nenashev. L.E.V. Management JSC has been appointed as the only person entitled to act on behalf of Nestlé Russia LLC and Nestlé Kuban LLC without a power of attorney.