Russia seizes shares of Danone and Carlsberg subsidiaries, says decree
This general view shows French Dairy firm Danone's Russian plant near Chekhov, outside Moscow on July 22, 2017. — AFP pic
Monday, 17 Jul 2023 7:09 AM MYT
MOSCOW, July 17 — Russia took control of shares belonging to French agribusiness Danone and Danish brewer Carlsberg, according to a decree published yesterday.
The decree signed by President Vladimir Putin says the Russian state would “temporarily” manage shares belonging to Danone Russia and to Baltika, which is owned by Carlsberg.
Danone said it was investigating the situation and “preparing to take all necessary measures to protect its rights as shareholder of Danone Russia, and the continuity of the operations of the business in the interest of all stakeholders, in particular its employees”.
Baltika is a leading brewing company in Russia, with approximately 30 per cent of the market share.
Carlsberg announced in March that it would sell the entirety of its activities in Russia, where it employed 8,400 people.
Last month the multinational brewer said it had found an unnamed buyer for the business, more than a year after announcing its exit from the market due to the conflict in Ukraine.
“Following the presidential decree, the prospects for this sales process are now highly uncertain,” Carlsberg said in a statement.
“The Carlsberg Group has not received any official information from the Russian Authorities regarding the presidential decree or the consequences for Baltika Breweries.”
One of few multinationals to have remained in Russia since the Ukraine offensive began, Danone said in October that it planned to withdraw from most of its business.
Danone then said it would give up the dairy and plant-based business in Russia, retaining only its infant nutrition branch.
The move could result in a write-off of up to one billion euros (US$1.1 billion), it said.
A large number of major Western companies have pulled out of Russia since Moscow launched its Ukraine offensive on February 24, 2022. — AFP
Monday, 17 Jul 2023 7:09 AM MYT
MOSCOW, July 17 — Russia took control of shares belonging to French agribusiness Danone and Danish brewer Carlsberg, according to a decree published yesterday.
The decree signed by President Vladimir Putin says the Russian state would “temporarily” manage shares belonging to Danone Russia and to Baltika, which is owned by Carlsberg.
Danone said it was investigating the situation and “preparing to take all necessary measures to protect its rights as shareholder of Danone Russia, and the continuity of the operations of the business in the interest of all stakeholders, in particular its employees”.
Baltika is a leading brewing company in Russia, with approximately 30 per cent of the market share.
Carlsberg announced in March that it would sell the entirety of its activities in Russia, where it employed 8,400 people.
Last month the multinational brewer said it had found an unnamed buyer for the business, more than a year after announcing its exit from the market due to the conflict in Ukraine.
“Following the presidential decree, the prospects for this sales process are now highly uncertain,” Carlsberg said in a statement.
“The Carlsberg Group has not received any official information from the Russian Authorities regarding the presidential decree or the consequences for Baltika Breweries.”
One of few multinationals to have remained in Russia since the Ukraine offensive began, Danone said in October that it planned to withdraw from most of its business.
Danone then said it would give up the dairy and plant-based business in Russia, retaining only its infant nutrition branch.
The move could result in a write-off of up to one billion euros (US$1.1 billion), it said.
A large number of major Western companies have pulled out of Russia since Moscow launched its Ukraine offensive on February 24, 2022. — AFP
Many other Western consumer brands had already quit Russki in the aftermath of the Feb 24 2022 Russki aggression in Ukraine.
ReplyDeleteCalsberg and Danone had already been warned by consumer groups as well as shareholders that they took reputational risks as well as financial risks in choosing to continue operating in Russki-land.
Both Carlsberg and Danone unwisely chose to continue by "staying out of politics".
As they say, you may not be interested in politics, but politics is interested in you.
Now they stand to lose Everything
Wow!
Delete"stand to lose Everything"!!??
Have u check how much profit contributions of Carlsberg & Danon come from their Russian operations?
The De-Russkification of the World economy continues inexorably.
ReplyDeleteRusski arse-lickers declared prematurely last year that "sanctions have failed"...forgetting that sanctions are a slow but relentless tool.
The Russki government now facing record deficits as even it's energy export revenues have declined.
When the bunch of Malaysia Madani joker ministers turned up in St. Petersburg, Russkis complained that even Malaysia's very modest trade with Russki had declined 30%.
On the surface, Malaysia had refused to apply sanctions on Russkis. In practice, it is difficult and costly in additional "handling charges" and dubious channels for any Malaysian to pay or get paid by any entity in Russki.
No reputable Malaysian bank will handle a Russki financial transaction, because the risk of incurring Wankee sanctions and losing US Dollar and/or Euro , Pound Forex transactions is way too dangerous for them to accept.
Wakakakaka…
Delete"sanctions are a slow but relentless tool"
Ooop… how many yrs have the Yank ,& it's doggies employed sanctions on Russia (start counting during Georgia conflict), Iran (since the Islamic revolution), NKorea (since the end of the Korean peninsula war)?
The latest Russian sanctions have drowned out the economic prospect of most if the Europe nations - aka pommieland, Germany etc.
Ooop…Russia has minimum US dollar reserve & Russia has returned to the top ten largest economies (ranking 8th) for the first time since 2014 after producing 2.3 trillion USD worth of goods and services in 2022, according to data from the World Bank.
Ouch… contrary to all the Russia doomsday reports u read from all those demoNcratic media!