Nestlé removes Russian operations from its balance sheet after loss of control

During its third-quarter 2026 results presentation, Nestlé disclosed that it will de-consolidate its Russian business as of the end of September because it no longer controls the local management. Russian authorities, acting on a directive from President Vladimir Putin, placed two Nestlé subsidiaries under the temporary oversight of L.E.V. Management, a firm associated with a general from the interior ministry.

Although Nestlé remains the legal owner of six factories and roughly 7,000 employees in Russia, it cannot make operational decisions there. The company said the adjustment will not alter the reported revenue or volume growth for the quarter, which continued to beat analyst expectations. Impacts on profit margins and cash flow are expected to appear only from the fourth quarter onward, while organic growth figures remain unchanged.