July 18, 2023
The Kremlin has taken control of the in-country subsidiaries of yogurt maker Danone and beer company Carlsberg, reports the BBC.
The units have been put in “temporary management” of the state, under a new order signed by Russian President Vladimir Putin. Moscow introduced rules earlier this year allowing it to seize the assets of firms from “unfriendly” countries. This came after many companies halted business in Russia following its invasion of Ukraine.
Danone and Carlsberg were in the process of selling their Russian operations.
Sunday’s order places the shares of Danone Russia and the Carlsberg-owned Baltika Breweries under the control of Russian property agency Rosimushchestvo.
France-based Danone, which started the process to sell its Russian business last October, said it was “currently investigating the situation”.
Carlsberg said it had not received “any official information from the Russian authorities regarding the presidential decree of the consequences for Baltika Breweries”.
“Following the presidential decree, the prospects for this sales process are now highly uncertain,” it added.
Also in April, it was announced that the Russian units of two energy companies – Germany’s Uniper and Fortum of Finland, had been brought under state control.
Danone’s Russia operation is the country’s largest dairy company, with around 8,000 employees. It was estimated that the sale of the business would result in a €1bn (US$1.1bn; £860m) hit for Danone.
Meanwhile, Carlsberg subsidiary Baltika produces some of the most recognizable beer brands in Russia, with 8,400 employees across eight plants, according to Carlsberg’s website.
Research contact: @BBC