Russia temporarily controls the assets of Danone and Carlsberg

Shares owned by the French company Danone and the Danish company Carlsberg have been temporarily seized by Russia, as stated in a recently published decree.

The decree, signed by President Vladimir Putin, outlines that the Russian state will manage the shares belonging to Danone Russia and Baltica, which are companies owned by Carlsberg.

Carlsberg had previously announced its intention to sell all of its activities in Russia, where it currently employs 8,400 individuals. In June of last year, the company revealed that it had found a buyer for these activities, although the buyer remained undisclosed.

This decision to withdraw from the Russian market was made over a year after the announcement of Carlsberg's departure from the region due to the conflict in Ukraine. Danone is one of the few international companies that have chosen to remain in Russia since the onset of the Ukraine war in early 2022.

In October of last year, Danone announced its plans to significantly reduce its business operations in Russia. The company stated that it would discontinue its dairy and plant-based businesses, while retaining its infant nutrition division.

Since February 24, 2022, a significant number of Western companies have withdrawn from Russia.