Moscow takes control of Danone's Russian subsidiary and Carlsberg's stake in local brewery

(Patria) - The Russian state has taken control of the Russian subsidiary of French yogurt maker Danone, along with the brewing company's stake in a local brewery, according to a decree signed on Sunday by President Vladimir Putin, Reuters reported.

The decree states that foreign-owned stakes in Danone Russia and Baltika Breweries are placed under the “temporary management” of the property agency Rosimushchestvo. This comes after the Russian subsidiaries of Germany's Uniper and Finland's Fortum were taken under state control in April.

The Kremlin had warned at the time that it could seize more Western assets on what it called a temporary basis in retaliation for foreign moves against Russian companies abroad following the invasion of Ukraine.

Carlsberg said in a statement late on Sunday that it “has not received any official information from the Russian authorities regarding the presidential decree or the consequences for Baltika Breweries”.

It adds that the prospects for a complete divestment of its business in Russia are now very uncertain. Carlsberg announced in June that it had signed an agreement to sell its Russian business, subject to regulatory approvals.

Danone said in a statement that it is investigating the matter, adding that the Kremlin's decision will not affect its 2023 financial guidance. The French company announced last October that it was looking for a buyer for its dairy food business in Russia.