Nestle Russia pledges to continue operations despite Kremlin transfer of assets
Nestle's Russian subsidiary pledged to continue its operations in Russia without regard to a decision by the Kremlin to transfer control of the company's assets, the Swiss food giant was quoted as saying on Monday. The company said the transfer did not amount to nationalisation or a change of ownership.
Sept 21 (Reuters) — Nestle's Russian subsidiary pledged to continue its operations in Russia without regard to a decision by the Kremlin to transfer control of the company's assets, the Swiss food giant was quoted as saying on Monday. "The Nestle Group in Russia is continuing its commercial activities in Russia in full and wishes to state its intention to unconditionally fulfil all obligations to clients, partners, and employees," state news agency TASS quoted the company's Russian press service as saying in a statement in Russian. V. Management, a little-known company with no public profile.
The Nestle statement quoted by TASS said the transfer did not amount to nationalisation or a change of ownership. V. Management would help the company continue to grow and improve its efficiency. After the presidential decree was announced last week, Nestle, maker of Nescafe coffee and KitKat chocolate bars, said it was "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 Kremlin said hostile actions by "unfriendly" countries played a role in its decision to take control of the Russian assets of Nestle and Auchan. In previous cases, temporary administration has often been followed by state expropriation, with assets later transferred to Kremlin-linked individuals or companies. Kremlin spokesman Dmitry Peskov said only temporary administration was under consideration for now. com;)