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Nestlé is assessing its options after Russia placed its local business under temporary external administration, adding the Swiss food and beverage group to a growing list of Western companies whose Russian assets have come under Moscow’s control since the invasion of Ukraine.

The maker of Nescafé coffee and KitKat confectionery said it had taken note of a presidential decree announcing the move and was evaluating the situation.

“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,” the company said in a statement.

The company operates six factories in Russia producing a range of F&B products including infant formula and coffee. It has a workforce of around 7,000 people in the country.

Russia reportedly generated approximately CHF 2 billion ($2.4 billion) in sales for Nestlé in 2021, the last year the company disclosed country-level figures, equivalent to around 2% of group sales at the time.

The move comes as Russia continues to tighten its control over assets owned by companies from countries it considers “unfriendly”. A decree signed by President Vladimir Putin in 2023 gave the Russian government powers to place assets owned by companies from those countries under temporary administration.

The mechanism has subsequently been used in a number of high-profile cases involving Western food, beverage and consumer goods companies. Moscow has also imposed measures including exit taxes and discounts on some transactions involving foreign businesses leaving the country.

Several major multinational F&B manufacturers, including Unilever, Heineken and Danone, have announced ther exit from the Russian market in recent years.

Nestlé was not the only food-related multinational targeted by Thursday’s decree. French supermarket group Auchan’s Russian assets were also transferred to temporary management, with Moscow-registered L.E.V. Management appointed to oversee the business.

Nestlé declined to provide further details on what action it may take.