Russia Seizes Control of Danone and Carlsberg Operations

Russia has taken control of the Russian subsidiaries of yoghurt maker Danone and beer company Carlsberg.

A new order made by Russian President Vladimir Putin puts the units under the “temporary management” of the state.

In the beginning of this year, Moscow made rules that let it take over the assets of companies from “unfriendly” countries.

After Russia invaded Ukraine, many companies stopped doing business there.

Danone and Carlsberg were getting ready to sell their businesses in Russia.

With the decision from Sunday, the Russian property agency Rosimushchestvo now has control over the shares of Danone Russia and the Baltika Breweries that are owned by Carlsberg.

Danone, which is based in France and started trying to sell its business in Russia last October, said it was “currently looking into the situation.”

The company also said that it was “getting ready to take all steps necessary to protect its rights as a shareholder of Danone Russia and to keep the business going.”

Carlsberg said that it had not gotten “any official information from the Russian authorities about the consequences of the presidential decree for Baltika Breweries.”

The Danish brewer also said that it had finished a “extensive process” to separate the Russian unit from the rest of the business. The company signed an agreement to sell Baltika Breweries last month, but the deal hasn’t been finished yet.

“After the president’s order, this sales process is now facing a lot of uncertainty,” the report said.

In April, Mr. Putin signed an order that let Russia temporarily take control of foreign assets. This was in response to moves by the US and other countries that Russia said were “hostile and against international law.”

Also in April, it was reported that the Russian branches of two energy companies, Germany’s Uniper and Finland’s Fortum, had been taken over by the government.

Danone’s business in Russia is the largest dairy company in the country. It has about 8,000 workers.

It was thought that selling the business would cost Danone €1 billion ($1.1 billion; £860 million).

The Carlsberg website says that Baltika, a subsidiary of Carlsberg, makes some of Russia’s best-known beer brands in eight plants with 8,400 workers.

Also Read:Indian Billionaire Ravi Ruia buys Russian-linked London mansion for Rs 1200 crore

Follow Instagram, Youtube, Twitter

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top