Russia seized control of the Russian subsidiaries of France’s Danone SA and Denmark’s Carlsberg under a decree by President Vladimir Putin aimed at companies from “unfriendly” countries.
(Bloomberg) — Russia seized control of the Russian subsidiaries of France’s Danone SA and Denmark’s Carlsberg under a decree by President Vladimir Putin aimed at companies from “unfriendly” countries.
According to Sunday’s decree, shares in Baltika Brewing Company, owned by Carlsberg, and in Danone Russia JSC will be transferred to Russia’s Federal Property Management Agency for “temporary management.”
Putin signed a decree in April allowing for “temporary” state control over the assets of companies or individuals from “unfriendly” states — which include the US and its allies – in response to similar moves, or the threat of them, by those countries.
Sunday’s move is only the second time the Kremlin has used the decree to seize assets. Previously, Russia took control of utilities owned by Finland’s Fortum Oyj and Germany’s Uniper SE.
Russia Seizes Foreign-Owned Utilities After EU Asset Moves
Danone, which makes yoghurt and baby food among other food products, had planned to sell most of its business in Russia but intended to keep 25% of shares and stay on the board of directors. It expected the sale could result in a write-off of up to €1 billion ($1.1 billion).
Carlsberg in June found a buyer for Baltica, the Russian unit said at the time, without disclosing details.
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