On Sunday, July 16, 2023, Russian President Vladimir Putin signed a decree. The decree puts the Russian subsidiary of French yoghurt maker Danone and Carlsberg’s stake in a local brewer under the “temporary management” of government property agency Rosimushchestvo. The move is aimed at ensuring the stable operation of the Russian economy and protecting the interests of Russian citizens.
The decision has disappointed Danone, as it believes it violates international law. Carlsberg expressed surprise and is assessing the potential consequences. This action will have a significant impact on the Russian food and beverage industry. Danone is one of the world’s largest food companies, with its Russian subsidiary being a major producer of dairy products.
Carlsberg is the largest brewer in Russia and holds a valuable stake in Baltika Breweries. The long-term implications of the decree remain uncertain. However, it will likely strain relations between Russia and the West and may make it more difficult for foreign companies to operate in Russia in the future.
Additional details about the decree include:
- The decree applies to all foreign-owned stakes in Danone Russia and Baltika Breweries.
- The government property agency Rosimushchestvo will manage the companies temporarily.
- The duration of the temporary management is not specified. This decree marks a significant development in the ongoing conflict between Russia and the West.
