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Russian companies of Danone and Carlsberg taken over by the state

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Russia has taken control of the Russian subsidiaries of Danone yoghurt producer and Carlsberg beer company. They were placed under the state’s “temporary management” under a new order signed by Russian President Vladimir Putin.

At the beginning of this year Russia introduced regulations allowing the acquisition of assets of companies from “unfriendly” countries. This came after many companies stopped their operations in the country due to its criminal attack on Ukraine. According to the BBC, Danone and Carlsberg were in the process of selling their Russian operations.

Under President Putin’s decree, control over the companies was taken over by the Russian agency Rosimushchestvo.

Danone the largest dairy company in Russia

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Danone began the process of selling its Russian business last October. As the company told the BBC, it is “currently investigating the situation”. The company added that it is “preparing to take all necessary measures to protect its rights as a shareholder of Danone Russia and the continuity of the company’s operations.”

Danone factory in RussiaNick NA/Shutterstock

The Danone branch in Russia is the largest dairy company in the country with approximately 8,000 employees. It was estimated that the sale of the company would bring the French 1 billion euros.

Carlsberg fears that the deal will not be completed

Meanwhile, Carlsberg’s subsidiary Baltika produces some of Russia’s most recognizable beer brands, employing 8,400 workers at eight plants, according to Carlsberg’s website.

Carlsber told the BBC that he had not received “any official information from the Russian authorities regarding the consequences of the presidential decree for Baltica Breweries”.

A representative of the Danish brewery also said that an “extensive process” to separate the Russian unit from the rest of the company has been completed. Last month, Carlsberg signed an agreement to sell Baltika Breweries, but the deal has not yet been finalized.

“Following the presidential decree, the prospects for finalizing this sale process are now highly uncertain,” it added.

Decree signed by Putin

In April, Putin signed an order allowing Russia to take temporary control of foreign assets in response to the actions USA and other countries that Russia has described as “unfriendly and contrary to international law.”

In the same month, it was announced that the state was taking control of two units of energy concerns – German Uniper and Finnish Fortum.

Main photo source: Nick NA/Shutterstock

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