Russia takes "temporary control" of local assets of French Danone and Danish Carlsberg

First modification: 07/18/2023 – 04:28

The “temporary takeover” by Russia of the assets of the European multinationals Danone and Carlsberg in its territory exposes the vulnerability of other consumer products companies that still have operations in that country.

A decree of the Presidency establishes that 98.56% of the shares of the Russian brand Báltika, belonging to the Danish brewery Carlsberg, and tens of thousands of shares of the French multinational pass “temporarily” under the control of Rosimúschestvo, the Agency Russian Federal State Property Management.

The soap maker Dove Unilever and the Swiss food giant Nestlé remain in Russia, as well as British American Tobacco, which is trying to sell its unit, or Reckitt, owner of brands such as Veet, Durex, or Vanish.

The latter brand is in the process of saying goodbye to its Russian unit since last year, a deal that, if successful, would make it the first major personal items maker to leave the country after the invasion of Ukraine.

France’s Danone announced in October its intention to relinquish control of its dairy food business in Russia, which could have led to a write-off of up to 1 billion euros in investment.

A source close to the matter quoted by the Reuters agency revealed that the multinational was weeks away from reaching an agreement to sell its Russian subsidiary, which has 7,500 employees spread over 13 factories. Until the Russian government took control.

Western companies are facing difficulties getting out of Russia after the government said in December they must sell their operations for at least half the price and pay a 10% tax to the state, Reuters reported.

With Reuters and EFE