UPDATE 1 — Nestle responds to Putin's decision to put its Russian business under external administration

(Adds details; paragraphs 4-9) By John Revill ZURICH, Sept 18 (Reuters) — Nestle said on Friday it was weighing all options to protect its rights after the Kremlin's decision to take control of the Swiss food maker's business in Russia. The maker of Nescafe coffee and KitKat chocolates said it took note of the decision, unveiled 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 of foreign-owned assets since the start of the war in Ukraine in 2022. A 2023 decree signed by Putin gives Moscow the power to place assets from countries it deems "unfriendly" under temporary administration. Nestle has six factories in Russia, making coffee, petcare and infant formula products.

With 7,000 employees there, it generated sales of about 2 billion Swiss francs in 2021, the last year it released figures. V. Management. Earlier, the Kommersant newspaper said a company known as KS Logistika had asked Putin to place Nestle's assets under temporary administration.

Kommersant, quoting a source familiar with the matter, said the request covered five Nestle-owned entities in Russia and could, in theory, result in a change of ownership. net)