The Russian government published a presidential decree wherein Baltika Breweries will be under the management of the Russian Federal Agency for State Property Management.
The Carlsberg Group has yet to receive official information from the Russian Authorities regarding the presidential decree or the consequences for Baltika Breweries. However, they have issued a statement explaining that the Carlsberg Group has been operating per local rules and regulations in Russia and finds this recent development unexpected.
The group has committed to assessing this development's legal and operational consequences and taking all necessary actions.
In 2022, the Carlsberg Group released a statement detailing its decision to dispose of its business in Russia fully and following an extensive process of separating the business from the rest of the Carlsberg Group. The agreement to sell the Russian business was signed on June 23, 2023, subject to regulatory approvals and the fulfilment of specific conditions under several jurisdictions.
However, the presidential decree has made aspects of this sale process highly uncertain.
The Carlsberg Group has begun acquiring more specific information and will publish any relevant and verified information and potential financial implications as soon as possible.
Danone is another business that has seen the Russian authorities aim to place its Russian branch under temporary external administration of Russian authorities, which the enterprise is investigating.
On October 14, 2022, Danone launched a process to transfer control of its EDP Business in Russia, progressing according to the expected schedule.
Danone is preparing to take all necessary measures to protect its rights as a shareholder of Danone Russia and the continuity of the operations of the business in the interest of all stakeholders, particularly its employees.
This decision has no impact on Danone's financial guidance for 2023.