On October 12, 2014, barrels are seen at the museum of the Baltika Brewery in St. Petersburg.Reuters/Alexander Demianchuk/File photo Obtaining license rights
COPENHAGEN, Oct 31 (Reuters) – Carlsberg has severed all ties with its Russian operations and is refusing to strike a deal with the Russian government to make its asset seizures look legitimate, its new chief executive says. CEO) made the announcement on Tuesday.
The Danish group has been trying to sell its Russian Baltica subsidiary since last year, following the lead of many other Western companies pulling out of Russia since the invasion of Ukraine.
But after the company announced in June that it had found a buyer for the business, Russian President Vladimir Putin ordered a temporary seizure of local beer company Carlsberg’s shares the following month.
“There’s no way around the fact that they stole our business in Russia,” said Jacob Arup Andersen, who took over as CEO in September. I’m not going to help you show it.”
Carlsberg, which has eight breweries and about 8,400 employees in Russia, took a 9.9 billion Danish crown ($1.41 billion) writedown on Baltica last year.
Arlop Andersen said Carlsberg was unable to find an acceptable solution from the limited interactions between Baltica’s management and Russian authorities since July.
“We have no intention of entering into any deal with the Russian government that would in any way justify an illegal takeover of our business,” he said on a call with reporters after the company released its quarterly results. Ta.
Carlsberg retaliated this month by terminating a license agreement for its brand in Russia that had allowed Baltica to produce, market and sell Carlsberg products in the country.
“Once these licenses expire in a grace period, we will no longer be able to manufacture our products. Of course we cannot guarantee that this will happen, but that is our expectation,” Arup Andersen said. .
The Russian Ministry of Finance announced that the Federal Real Estate Agency Rosimshchestvo has been appointed as interim administrator and will exercise the powers of the owner, with the exception of property disposal powers.
“At the same time, the introduction of temporary management does not involve any change in ownership structure,” the Treasury Media Service said in a statement.
($1 = 7.0168 Danish Crowns)
Report by Jacob Gronholt-Pedersen and Reuters. Written by Jacob Gronholt Pederson and Lydia Kelley.Editing: Jean Harvey and Jerry Doyle
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