- By Annabelle Liang
- business reporter
Jul 17, 2023 at 3:51 am BST
Updated 49 minutes ago
Russia has taken control of the Russian subsidiaries of yogurt maker Danone and beer group Carlsberg.
The units have been placed under the state’s “temporary administration” under a new order signed by Russian President Vladimir Putin.
Moscow introduced rules earlier this year allowing it to confiscate assets from firms in “unfriendly” countries.
This came after many companies stopped doing business in Russia following the invasion of Ukraine.
Danone and Carlsberg were in the process of selling their Russian operations.
Sunday’s order places the shares of Danone Russia and Carlsberg-owned Baltika Breweries under the control of Russian real estate agency Rosimushchestvo.
France-based Danone, which began selling its Russian business last October, said it was “currently studying the situation”.
The company added that it is “preparing to take all necessary measures to protect its rights as a shareholder of Danone Russia and the continuity of business operations.”
The Danish brewer also said it had completed an “extensive process” to separate the Russian unit from the rest of the company. Last month, the company signed an agreement to sell Baltika Breweries, but hadn’t finalized the deal yet.
“Following the executive order, the prospects for this sale process are now highly uncertain,” it said.
In April, Putin signed an executive order allowing Russia to temporarily take control of foreign assets in response to actions by the US and other countries that Russia described as “unfriendly and contrary to international law.”
Also in April, it was announced that the Russian units of two energy companies – Germany’s Uniper and Finland’s Fortum – had been brought under state control.
With around 8,000 employees, Danone’s Russian subsidiary is the largest dairy company in the country.
It was estimated that the sale of the company would cost Danone €1bn (US$1.1bn; £860m) in damage.
According to Carlsberg’s website, Carlsberg subsidiary Baltika produces some of the most well-known beer brands in Russia, employing 8,400 people across eight plants.