Moscow Takes Control Of Danone's Russian Subsidiary, Carlsberg's Stake In Brewer

By Reuters
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Moscow Takes Control Of Danone's Russian Subsidiary, Carlsberg's Stake In Brewer

The Russian state has taken control of French yoghurt maker Danone's Russian subsidiary along with beer company Carlsberg's stake in a local brewer, according to a decree signed by President Vladimir Putin at the weekend.

The decree said that foreign-owned stakes in Danone Russia and Baltika Breweries were being put under the 'temporary management' of government property agency Rosimushchestvo.

It comes after the Russian subsidiaries of Germany's Uniper and Finland's Fortum were taken under state control in April.

The Kremlin warned at the time it could seize more Western assets on what it said was a temporary basis in retaliation for foreign moves against Russian companies abroad after Moscow sent thousands of its troops into Ukraine last year.

'Not Received Information'

Carlsberg said in a statement late on Sunday it had "not received any official information from the Russian authorities regarding the presidential decree or the consequences for Baltika Breweries".


Carlsberg had planned to sell its Russian operations, with an agreement signed on 23 June, which was subject to regulatory approvals. However, following the presidential decree, the prospects for this sales process are 'now highly uncertain', the company said in a statement.

'The group is in the process of obtaining more detailed information and will publish any relevant and verified information, including potential financial implications, as soon as possible,' it said.

Financial Guidance

Danone said in a statement that it was investigating the issue, adding that the Kremlin's decision would have no impact on its financial guidance for 2023.

The French company said last October it was seeking a buyer for its dairy food business in Russia, in a deal that could lead to a write-off of up to €1 billion.


This process had been 'progressing according to the expected schedule', the company said in a statement.

It added that it is 'preparing to take all necessary measures to protect its rights as shareholder of Danone Russia', and ensure the continuity of its operations. [Additional reporting by ESM]

Read More: Top Brands Pull Out Of Russia, But Their Goods Remain Easy to Find

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