Putin expropriates Danone and Carlsberg subsidiaries

The Russian state took control of the Russian subsidiary of the French yogurt manufacturer Danone and participation of the brewery Carlsberg at a local brewery, according to a decree signed on Sunday by President Vladimir Putin.

According to the decree, foreign-owned stakes in Danone Russia and the Baltika brewing company are transferred to the “temporary management” of the state property agency Rosimuschestvo.

This happens after the Russian “daughters” of the German Uniper and Finnish Fortum will remain under state control.

The Kremlin then warned it could temporarily seize more Western assets in retaliation for foreign crackdowns on Russian companies abroad after Moscow sent thousands of its troops to Ukraine last year.

In a statement late Sunday, Carlsberg said it “had not received any official information from the Russian authorities about the presidential decree or its implications for Baltika Brewing Company.”

He added that the prospects for the complete sale of his business in Russia are currently very vague. In June, Carlsberg said it had signed an agreement to sell its Russian business, subject to regulatory approval.

Danone said in a statement that it was investigating the matter, adding that the Kremlin’s decision would not affect its financial projections for 2023.

Last October, the French company said it was looking for a buyer for its Russian dairy business in a deal that could result in a write-down of up to one billion euros (nearly 19 billion pesos). Reuters.

Source: Aristegui Noticias

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