Cyprus Mail
BusinessInternationalRussia

Moscow takes control of Russian subsidiary of Danone and Carlsberg’s stake in brewer

carlsberg

The Russian state has taken control of French yoghurt maker Danone’s (DANO.PA) Russian subsidiary along with beer company Carlsberg’s (CARLb.CO) stake in a local brewer, according to a decree signed by President Vladimir Putin on Sunday.

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 (UN01.DE) and Finland’s Fortum (FORTUM.HE) 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.

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”.

It added that the prospects for full disposal of its business in Russia were now highly uncertain. Carlsberg said in June it had signed an agreement to sell its Russian business, subject to regulatory approvals.

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 euros ($1.12 billion).

($1 = 1.1227 euros)

Follow the Cyprus Mail on Google News

Related Posts

Israel inflation rate accelerates to 2.7 per cent in March, above consensus

Reuters News Service

Startups Can Now Apply for ReflectX Startup Programme, Unlocking Exclusive Benefits to Accelerate Their Journey

Press Release

Tesla to lay off more than 10 per cent of staff globally as sales fall

Reuters News Service

Cyprus minister in Abu Dhabi for energy conference

Souzana Psara

Russian man sentenced to 14 years in prison for collaborating with Ukraine

Reuters News Service

South African property giant invests in Nicosia malls

Souzana Psara