Putin seizes assets owned by Carlsberg, Danone

Nation

17 July 2023, 01:27 PM

Russian dictator Vladimir Putin signed a decree on July 16 on the transfer of significant food industry assets — Baltika Brewing Company LLC and Danone Russia JSC — to "temporary management", according to the published decree.

All, ie, 100% of Baltika, was transferred to the Federal Agency for State Property Management (Rosimushchestvo), including 98.56% owned by the Swedish legal entity Carlsberg, 0.09% by the German legal entity Carlsberg and 1.35% by Hoppy Union LLC.

In addition, 100% of Danone's Russian business (83.29 billion shares of Produits Laitiers Frais Est Europe and 85,000 shares of Danone Trade) came under the temporary control of the Russian Federation.

Carlsberg Group announced plans to leave the Russian market in March 2022. In June 2023, media reports emerged that Carlsberg had agreed to sell its Russian business without disclosing the details of the deal.

Baltika is the second-largest brewing company in Russia and operates eight breweries in the country.

On March 6, 2022, French food giant Danone announced the termination of its investment projects in Russia. In February 2023, Danone declared that it was ready to sell its assets in Russia, but with a buyout option and seats on the board of directors.

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