17-7-2023 (MOSCOW) The Russian government has assumed control of the shares belonging to French agribusiness company Danone and Danish brewer Carlsberg, as stated in a decree issued by President Vladimir Putin. The decree specifies that the Russian state will manage the shares of Danone Russia and Baltika, which is owned by Carlsberg, on a temporary basis.
Danone has responded by stating that it is investigating the situation and preparing to take necessary measures to protect its rights as a shareholder of Danone Russia. The company is also committed to ensuring the continuity of business operations for the benefit of all stakeholders, particularly its employees.
Baltika, a prominent brewing company in Russia with approximately 30 percent market share, now falls under the temporary management of the Russian state. Carlsberg had previously announced its plans to sell its entire business in Russia, which employed 8,400 people. However, the sale process has become highly uncertain following the presidential decree.
Carlsberg expressed uncertainty regarding the consequences of the decree and its impact on Baltika Breweries. The company stated that it has not received any official information from Russian authorities in this regard.
Danone, one of the few multinational companies that remained in Russia despite the conflict in Ukraine, announced last October its intention to withdraw from most of its business in the country. It planned to discontinue its dairy and plant-based operations while retaining its infant nutrition branch. This strategic move may lead to a potential write-off of up to one billion euros ($1.1 billion).
Since the start of the Ukraine offensive in February 2022, numerous major Western companies have chosen to withdraw from the Russian market.
