Putin seized control of Danone and Carlsberg shares in Russia

Carlsberg says the planned sale of its Russian business is «highly uncertain» right now. Photo: Alexander Demyanchuk/REUTERS

Russia has taken control of shares held by French yogurt maker Danone and Danish brewery Carlsberg as Vladimir Putin attempts to fund his illegal war in Ukraine.

The Russian state will «temporarily» manage the shares held by Danone Russia and Baltika, which are owned by Carlsberg, in accordance with a presidential decree against companies from «unfriendly» countries, signed by Putin.

Danone stated that it is investigating the situation and is “preparing to take all necessary measures to protect its rights as a shareholder of Danone Russia and ensure business continuity in the interests of all stakeholders, in particular its employees.”

The company was one of the few Western companies that remained in Russia after Putin's invasion of Ukraine. Last March, the company defended its decision, saying it has a «responsibility to the people we feed.»

Baltika is Russia's leading brewer, accounting for about 30% of the market. In March, Carlsberg announced that it would sell all of its production in Russia, where it employs 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 withdrawal from the market due to the conflict in Ukraine.

Carlsberg said in a statement: of this sales process is currently very vague.

The Carlsberg Group has not received any official information from the Russian authorities regarding the presidential decree or the consequences for the Baltika brewing company.

One of the few multinational corporations that have remained in Russia since the start of the offensive against Ukraine, Danone said. in October, she planned to exit most of her business. Danone then said it would phase out its dairy and plant-based business in Russia, retaining only its baby food business.

The move could result in up to €1bn (£860m) being written down. it says.

Danone is considered one of the consumer goods companies most dependent on Russia, where it sells yogurt and other dairy products and has about 8,000 employees.

Speaking of its deciding to stay in Russia last year, chief executive Antoine de Sainte-Affric said «it's very easy to get sucked into black-and-white thinking and demagogic positions, but in the end our reputation depends on our behavior.»

A large number of large Western companies left Russia after Moscow launched its invasion of Ukraine in February last year.