Carlsberg has lost control of Russian brewery Powerful earthquake shakes El Salvador, Honduras and Nicaragua

Carlsberg says he has lost control of his brewery in Russia. Following the signing of a decree by Russian President Vladimir Putin, the Carlsberg Group no longer controls the management or operation of Russia’s Baltika breweries.

The change of management took place without Carlsberg’s knowledge or consent, the Danish brewing group announced in Copenhagen on Wednesday. It is unclear what impact this development will have on the breweries’ ongoing operations and the current sales process of the Russian company, the group added.

Carlsberg announced on Sunday that the Baltika breweries will be placed under temporary Russian state administration under the presidential decree. The development came unexpectedly, the prospects for the sales process are now highly uncertain, the company had announced.

A buyer for Baltika had already been found

Carlsberg is one of the largest brewing groups in the world. A month after the Russian invasion of Ukraine, the group announced in March 2022 that it would withdraw completely from Russia and sell its Baltika brewing activities there.

Baltika is considered the largest brewer in Russia. Almost four weeks ago, Carlsberg announced that it had found a buyer for its company in Russia, but the Danes were still waiting for the necessary approvals from the Russian authorities. Carlsberg left the name of the buyer and the sale price blank.

Danone also in state hands

Putin had also placed the food company Danone Russia under state control. According to Moscow media, the deputy head of government of the Russian Republic of Chechnya, Jakub Sakrijew, has been appointed as the new general director. He is a cousin of Chechen leader Ramzan Kadyrov. Zakriyev has held various government positions, including Chechen Agriculture Minister.

Danone announced on Sunday that the company was aware of Putin’s decision and was now investigating the situation. According to this data, Danone started selling its business in Russia in October last year. However, every effort must be made to protect not only the interests as shareholders of Danone Russia, but also those of the employees.

Western companies that want to get rid of their business in Russia because of Moscow’s war against Ukraine complain time and again that they have to sell well below their value or fear cold expropriation. According to Moscow, many companies have a buyback option if they decide to return to the Russian market after the end of the war. (saw/awp/sda/dpa)