17 July 2023

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.

The decree published on Sunday says the Russian state would “temporarily” manage shares belonging to Danone Russia and to Baltika, which is owned by Carlsberg.

The move 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.

Danone said it was investigating the situation and “preparing to take all necessary measures to protect its rights as shareholder of Danone Russia, and the continuity of the operations of the business in the interest of all stakeholders, in particular its employees”.

Baltika is a leading brewing company in Russia, with approximately 30% of the market share. Carlsberg announced in March that it would sell the entirety of its activities in Russia, where it employed 8,400 people.

Last month the multinational brewer said it had found an unnamed buyer for the business, more than a year after announcing its exit from the market due to the conflict in Ukraine.

“Following the presidential decree, the prospects for this sales process are now highly uncertain,” Carlsberg said in a statement.

“The Carlsberg Group has not received any official information from the Russian Authorities regarding the presidential decree or the consequences for Baltika Breweries”...