Russia takes control of shares of subsidiaries of Danone and Carlsberg companies

The Russian state took control of the local assets of the French agri-food group Danone and the Danish brewer Carlsberg, which had announced their intention to leave the country after the start of the offensive in Ukraineaccording to a decree published on Sunday.

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The decree, signed by President Vladimir Putin, indicates that the State “provisionally” assumed custody of 98.5% of the shares of the Russian brewery Baltikabelonging to Carlsberg, and tens of thousands of shares of Danone’s Russian subsidiaries.

Carlsberg had announced at the end of June that it had found a buyerwhom he did not identify, of his activities in Russia, more than a year after announcing his withdrawal from the country because of the military intervention in Ukraine.

“After the presidential decree, the prospects of this sale process are now very uncertain”, Carlsberg acknowledged in a statement on Sunday.

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The group had announced at the end of March 2022 the sale of its important activities in Russiawhere it had a staff of 8,400 employees and had owned the Baltika brand since 2000.

Danone said on Sunday that had “taken note of the decree of the Russian authorities, which seeks to temporarily place Danone Russia under external administration” and assured that “he is currently studying the situation.”

In a statement, he added that was “preparing to take all necessary measures to protect your rights as a shareholder of Danone Russiaand the continuity of the operations of the company in the interest of all interested parties, in particular its employees”.

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Danone had announced in October its intention to to divest most of its activities in Russia.

The French group, which At first, it defended its presence in Russia to respond to the “essential needs of the civilian population.”finally decided to give up control of its “dairy and vegetable products” branch and keep the infant nutrition branch.

Danone specified at that time that the operation could “imply a depreciation of up to 1,000 million euros” (about 1,120 million dollars at current exchange rates).

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Numerous multinationals left Russia or suspended their activities in that country after the start of the offensive in Ukraine on February 24, 2022, and the sanctions of the Western powers against Moscow that have followed one another since then.

Source: Elcomercio

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I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.