Nestle deconsolidates Russian assets after imposition of temporary administration

MOSCOW. Oct 22 (Interfax) - Swiss food giant Nestle deconsolidated its Russian assets effective end of September because they were placed under temporary administration, the group said in a press release on its results for the first nine months of 2026.

This decision was made because, while it remains the legal owner of the assets, Nestle has no control over the management of operations in Russia, the company said.

Nestle's operations in Russia generated about 2% of the group's global sales and 3-4% of the group's free cash flow. With the deconsolidation, about CHF1.6 billion in assets have been derecognized.

Russia's president issued a decree on September 17 to place Nestle's Russian assets under the temporary management of L.E.V. Management, along with those of FM Logistics, Bati Logistics and retail chains Auchan and Lemana Pro (formerly Leroy Merlin).

JSC L.E.V. Management was registered in Moscow in October 2024. The company's general director is Andrei Krayushkin. Information about the owners has not been disclosed. Judging by the disclosed financial statements for 2025, the company was not conducting active operations at that time.

Nestle has been operating in Russia since 1994. It owns six production sites located in the Kaluga, Vologda, Samara and Vladimir regions, and Perm and Krasnodar Territories. The combined revenue of Nestle's four main legal entities in 2021 amounted to 29.94 billion rubles. The company has not disclosed data for subsequent periods.

In 2022, the company suspended its investment program and gave up advertising and the sale of some brands. It decided to focus on producing essential products such as baby food, cereals, specialized nutrition and therapeutic pet food.