Carlsberg’s Russian subsidiary seized by state
The subsidiary – Baltika Breweries – is now under the control of the Russian Federal Agency for State Property Management, the brewer said.
Carlsberg said it had signed off on the disposal of the group last month but the sales process is now “uncertain”.
The rules allowing the country to seize the assets of businesses from “unfriendly” countries came into place earlier this year as Russia continues to wage war against Ukraine. Many companies halted business in Russia after its invasion began.
No official information
A statement from Carlsberg read: “The Russian government has published a presidential decree transferring Baltika Breweries to the temporary management of the Russian Federal Agency for State Property Management.
“Carlsberg Group has not received any official information from the Russian authorities relating to the presidential decree or the consequences for Baltika Breweries.
“Carlsberg Group has been operating in accordance with local rules and regulations in Russia and finds this development unexpected.”
Necessary action
It continued: “Carlsberg Group will assess the legal and operational consequences of this development and take any necessary actions in response. Any potential financial implications of the presidential decree will be assessed and communicated when possible.”
It added that on 28 March 2022, the group announced its decision to seek a full disposal of its business in Russia and following an extensive process of separating the business from the rest of the Carlsberg Group, an agreement to sell the Russian business had already been signed on 23 June 2023 subject to regulatory approvals and fulfilment of certain conditions in a number of jurisdictions.
“The prospects for this sales process are now made uncertain given this presidential decree,” Carlsberg said. “Carlsberg Group is in the process of obtaining more detailed information and will publish any relevant and verified information once available.”
