Switzerland’s Nestle pulls products from Russia after Zelensky criticism
Just days after Ukrainian leader Volodymyr Zelensky’s harsh critique of Swiss banks and companies for continuing to operate in Russia, Nestle said it will suspend the sale of major brands.
In a publicly televised address on Saturday, Zelensky hit out at international firms who continued to operate in Russia “even though our children are dying”.
Zelensky urged Swiss companies to stop doing business in Russia and told the country’s banks to freeze funds belonging to the Kremlin elite.
Speaking via video link to a rally outside the Swiss parliament in Bern, Zelensky condemned firms that maintained business as usual despite the siege of several Ukrainian cities.
Zelensky criticised Swiss companies for continuing to do business in Russia, singling out food giant Nestle.
The company’s slogan is “good food, good life”, he said.
“Business works in Russia even though our children are dying and our cities are being destroyed,” and while people in Mariupol were “without food, without water, without electricity, under bombardment”.
Ukraine: Pressure builds on Switzerland to deport ‘Putin’s mistress’
On Wednesday, Nestle released a statement saying they would suspend most of their activities in Russia due to the invasion.
While several other international firms had already announced they were suspending their operations in Russia, Nestle had continued to operate.
Nestle said it would stop producing and selling some of the better known company brands such as Nesquick and Kit Kat in Russia.
However, it would continue to produce and sell some essential products, like baby formula and medical products.
Nestle said it expected to operate “on a non-profit basis” for the foreseeable future in Russia, but any proceeds it generated would be donated to the International Federation of Red Cross and Red Crescent Societies (IFRC).
Nestle also said it stood by its 5,800 employees in Ukraine and had so far donated hundreds of tonnes of food.
Two of the three factories in Ukraine will continue to remain operational. Those in Lviv and Lutsk will stay open, but that in the hard-hit city of Kharkiv has been closed and repurposed into a food distribution hub to supply the local population.
Nestle did not address why the decision was eventually made to curtail dealings in Russia.
Pressure was building on Nestle internally as well, with Actares, a shareholder group, calling upon them to join an international boycott on operating in Russia.
READ MORE: Shareholder group urges Switzerland’s Nestle to halt all Russia business
Several other Swiss companies including Swatch and Rolex have ceased operations in Russia, although Credit Suisse continues to maintain several ties to Russia.
A spokesperson for Credit Suisse said on Wednesday a decision to leave was being considered.
“We are now examining the situation. It's a very serious situation. We'll see what that means for our work over the next few months. I haven't made a decision yet."
Comments
See Also
In a publicly televised address on Saturday, Zelensky hit out at international firms who continued to operate in Russia “even though our children are dying”.
Zelensky urged Swiss companies to stop doing business in Russia and told the country’s banks to freeze funds belonging to the Kremlin elite.
Speaking via video link to a rally outside the Swiss parliament in Bern, Zelensky condemned firms that maintained business as usual despite the siege of several Ukrainian cities.
Zelensky criticised Swiss companies for continuing to do business in Russia, singling out food giant Nestle.
The company’s slogan is “good food, good life”, he said.
“Business works in Russia even though our children are dying and our cities are being destroyed,” and while people in Mariupol were “without food, without water, without electricity, under bombardment”.
Ukraine: Pressure builds on Switzerland to deport ‘Putin’s mistress’
On Wednesday, Nestle released a statement saying they would suspend most of their activities in Russia due to the invasion.
While several other international firms had already announced they were suspending their operations in Russia, Nestle had continued to operate.
Nestle said it would stop producing and selling some of the better known company brands such as Nesquick and Kit Kat in Russia.
However, it would continue to produce and sell some essential products, like baby formula and medical products.
Nestle said it expected to operate “on a non-profit basis” for the foreseeable future in Russia, but any proceeds it generated would be donated to the International Federation of Red Cross and Red Crescent Societies (IFRC).
Nestle also said it stood by its 5,800 employees in Ukraine and had so far donated hundreds of tonnes of food.
Two of the three factories in Ukraine will continue to remain operational. Those in Lviv and Lutsk will stay open, but that in the hard-hit city of Kharkiv has been closed and repurposed into a food distribution hub to supply the local population.
Nestle did not address why the decision was eventually made to curtail dealings in Russia.
Pressure was building on Nestle internally as well, with Actares, a shareholder group, calling upon them to join an international boycott on operating in Russia.
READ MORE: Shareholder group urges Switzerland’s Nestle to halt all Russia business
Several other Swiss companies including Swatch and Rolex have ceased operations in Russia, although Credit Suisse continues to maintain several ties to Russia.
A spokesperson for Credit Suisse said on Wednesday a decision to leave was being considered.
“We are now examining the situation. It's a very serious situation. We'll see what that means for our work over the next few months. I haven't made a decision yet."
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.