Putin ‘temporarily’ nationalizes assets of foreign companies
The Russian president has signed a decree imposing temporary state control over foreign shares of food and beer manufacturing giants
Russia has temporarily nationalized the assets of two major food and beer manufacturers. All foreign shares of Danone Russia, which is controlled by its French parent company, and Baltika Breweries, controlled by the Danish Carlsberg Group, have been handed over to the Russian Federal Property Management Agency following a presidential decree.
Both foreign giants recently announced plans to sell their businesses in Russia. Over 83 million Danone Russia shares owned by Produits Laitiers Frais Est Europe were transferred under state control, the decree published on the official government website on Sunday said. The decision also covered almost 100% of shares within Baltika Breweries’ registered capital.
French food company Danone recently faced pressure from clients and activists to exit the Russian market amid the conflict between Moscow and Kiev. The company initially defended its decision to stay by saying it had a responsibility to “the people we feed, the farmers who provide us with milk, and the tens of thousands of people who depend on us.”
The company’s business in Russia included 13 factories, 7,200 employees, and amounted to 5% of its annual global sales of around €24 billion ($27 billion). In October 2022, Danone announced it was seeking to sell its business in Russia in a transaction that could result in a write-off of up to €1 billion, Western media reported.
https://www.rt.com/russia/579797-putin-foreign-companies/