Nestle asked to halt all business in Russia by Ukrainian Prime Minister

Nestle's CEO Mark Schneider. EPA/LAURENT GILLIERON

Nestle's CEO Mark Schneider. EPA/LAURENT GILLIERON

Published Mar 17, 2022

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Ukrainian Prime Minister Denys Shmyhal urged Nestle Chief Executive Officer Mark Schneider to rethink the company's decision to continue some operations in Russia, publicly raising pressure on the world's largest food company.

While Nestle has suspended shipments of non-essential products like Nespresso coffee and San Pellegrino water to Russia, it's still supplying the population with necessities such as baby and pet food. Russia was the source of 1.7 billion francs ($1.8 billion) of revenue last year, or about 2% of Nestle's total.

Shmyhal said Schneider had shown "no understanding," but that he hopes the Swiss company will reverse course soon.

"We consider conversations with governmental authorities private," a Nestle spokesperson said by email, without commenting on Nestle's position on continuing business in Russia. "We will continue to do the utmost to deliver food to Ukrainians in the country and to support Ukrainian refugees in many countries."

Shmyhal's comment, made via Twitter, elicited responses calling for the boycott of Nestle products and shows the growing pressure on multinationals that keep businesses open in Russia. The war has spurred an exodus from that market by U.S., European and other companies after the invasion of Ukraine.

Nestle has previously braved economic downturns in Russia and continued to invest there during devaluations of the ruble, saying it was in for the long haul. The company has six factories and more than 7,000 employees in the country.

Companies that supply essential food and basic goods in Russia have argued citizens need those products to live. Danone General Secretary Laurent Sacchi has said that the yogurt maker is "well-attuned to the importance of these issues." The situation is being made more complicated by threats of possible asset seizures if companies leave Russia.

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