Nestlé drops Russian assets from financial reports
As reported by 'Fontanka', the order transferring Nestle assets to the temporary management of the company JSC 'L.E.V. Management' was signed on September 17.
Consensus
- Nestlé ceased including its Russian operations in its consolidated financial statements starting late September 2026.
- The Russian assets were transferred under a presidential decree to temporary management.
- Nestlé remains the legal owner of the Russian assets.
- The transfer of control means Nestlé no longer has operational control over its Russian business.
- The Russian operations accounted for approximately 2% of Nestlé's global revenue and 3–4% of its operating profit and free cash flow.
- The decoupling reduced Nestlé's net assets by 1.6 billion Swiss francs.
- The decoupling increased Nestlé's net debt by approximately 900 million Swiss francs by the end of 2026.
- The Russian assets were transferred to AO 'L.E.V. Management'.
- The same presidential decree transferred assets of Auchan, FM Logistics, Bati Logistics, and 'Le Monlid' (formerly 'Leroy Merlin') to the same company.
- The decree was signed by Russian President Vladimir Putin on September 17, 2026.
Points of divergence
- The Russian business contributed 3–4% to Nestlé's base operating profit. — fontanka
- The company's CEO is General of the Ministry of Internal Affairs Andrey Kraushkin. — tg_echoonline_news
- The write-off of net assets amounted to 1.6 billion Swiss francs ($1.95 billion). — tg_echoonline_news
- An additional 1.4 billion francs were attributed to non-cash expenses related to exchange rate differences. — tg_echoonline_news
- AO 'L.E.V. Management' was registered in Moscow in October 2024. — fontanka
- Nestlé has not disclosed financial results for its Russian legal entities since 2022. — fontanka
- The combined revenue of four main companies in 2021 was 29.94 billion rubles. — fontanka
- Nestlé operates six facilities in Vologda, Kaluga, Samara, Vladimir regions, and Krasnodar and Perm territories. — fontanka
Coverage (4 sources)
- Swiss Nestle stopped accounting for Russian assets in its reporting — Фонтанка
- Nestle stopped recognizing assets in Russia in financial reporting — Вести
- Nestle wrote off Russian business from balance sheet after its transfer under temporary administration — ЭХО / Новости
- Nestle deconsolidated Russian assets after decree on temporary administration — Интерфакс
Key entities
- Nestlé
- Russia
- Moscow
- Vladimir Putin
- INTERFAX.RU
- MVD
- Financial Times
- Nestlé
- LEV Management
- LLC L.E.V. Management
- Andrey Krayushkin
- Swiss Nestle
- Swiss Nestle
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