Two Nestlé subsidiaries are under the control of a Russian administrator
Keystone / Jean-Christophe Bott
Switzerland said Vladimir Putin’s seizure of Russian assets belonging to Nestlé is a worrying development and it’s working with the company to get the actions reversed.
The Russian president on Thursday ordered stakes in businesses of Nestlé and French supermarket chain Auchan to be placed under temporary administration by a local company.
The Kremlin linked the actions to European military support for Ukraine. For Switzerland, it comes at a particularly sensitive time. The country is less than two weeks away from a national vote on its neutrality, where the result could affect Swiss sanctions on Russia.
+ Russian supermarket shelves ‘full of Nestlé products’
Switzerland’s State Secretariat for Economic Affairs, speaking on behalf of the government, said in a statement that it’s “worried” about the seizure of Nestlé’s assets. It’s working with Nestlé “toward the reversal of the compulsory administration,” it said.
Eric Nussbaumer, a former senior lawmaker of the Social Democrats, called Russia’s move “unjustified.”
“Apparently there’s resentment against Switzerland in high places in Russia,” he said. “I advise extreme caution when dealing with this regime.”
Nussbaumer, who was a foreign policy expert in Switzerland’s parliament for almost 20 years before he retired in April, doesn’t think that Moscow is trying to sway Switzerland’s neutrality vote later this month. Polls indicate that the proposal is likely to fail.
Tensions rising
But the timing of the move will add to tensions between Switzerland and Russia. The Swiss initiative proposes imposing stricter rules on how the country applies its longstanding policy of neutrality.
It would remove the current flexibility that enabled the government to mirror European Union sanctions on Russia in 2022 after the full-scale invasion of Ukraine.
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How the neutrality initiative could affect Swiss policy
The Kremlin recently weighed in on the vote, trying to sway voters by saying Switzerland abandoned neutrality with the sanctions move. Switzerland is on a list of countries that Russia deems “unfriendly.”
Swiss neutrality was enshrined at the Treaty of Paris in 1815, and has been a core element of the country’s foreign policy since the founding of the modern Swiss Confederation in 1848.
While neutrality is a strongly held tradition, the Swiss have adapted it as times have changed, including after the end of the Cold War. A government website on the history of neutrality says that the upheaval from the fall of the Berlin Wall and the collapse of the Soviet Union “fundamentally changed Switzerland’s foreign and security policy environment.”
“It is evident that neutrality has never been a rigid institution,” Switzerland said in a white paper in 1993 on neutrality.
The seizure of the Nestlé and Auchan units is the largest takeover of foreign corporate assets in Russia since at least 2024. It comes amid deep tensions with Europe, which has been hit with multiple so-called hybrid attacks that have been blamed on Moscow. Among the incidents have been multiple drone attacks, including an attempted one at Leipzig airport in Germany.
Nestlé said in a statement Friday that it took note of Putin’s decree and was assessing the situation and its options. “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,” it said.
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Kremlin justifies ‘unfriendly’ Nestlé asset grab
–With assistance from Laura Malsch.
©2026 Bloomberg L.P.
