Russia puts Danone and Carlsberg under state control

The Russian Federation took control of the Russian subsidiaries of the Danone yogurt maker and the Carlsberg brewery. With a new decree signed by Russian President Vladimir Putin, the companies came under the “temporary management” of the state.

Earlier this year, Moscow introduced rules allowing the seizure of assets of companies in “enemy” countries. The rules were established after many companies stopped their business in Russia due to the war in Ukraine. The final decision was signed within the scope of these rules.

Patron of DANONE AND CARSLBERG

Danone and Carlsberg were in the process of selling their operations in Russia. With the decision taken yesterday, the shares of Baltika Breweries owned by Danone Russia and Carlsberg became under the control of the Russian state-owned company Rosimushchestvo (Russian Federal Property Management Agency).

France-based Danone said it was “currently investigating the situation.” The firm stated that “the company is prepared to take all necessary measures to protect the continuity of its operations.”

Carlsberg said that they “have not received any official information from the Russian authorities about the presidential decree on Baltika Breweries.” The Danish company added that they have completed an “extensive process” to separate the Russian unit from the rest of the company.

TWO LARGE COMPANIES HAVE BEEN NAMED

In April, Putin signed a decree allowing Russia to temporarily take control of foreign assets, in response to Russian actions by the United States and other Western countries.

In the country, the trustees were previously appointed to manage the assets of the German companies Uniper and Finnish Fortum in Russia.

Kremlin spokesman Dmitriy Peskov said the trustees’ decisions in Russia were made due to the “aggressive” attitudes of Western countries towards Russian assets.