Carlsberg has officially concluded its withdrawal from the Russian market following the endorsement of its asset sale to local enterprise VG Invest.
In a notable development, Carlsberg has successfully extricated itself from Russia by finalising the sale of its interests in Baltika Breweries to VG Invest, a local enterprise. The deal, totalling 34 billion roubles (£252.5 million), received the green light from both Danish and Russian authorities, signifying the end of Carlsberg’s operations in the region. This move marks a significant shift in the brewing industry landscape in Russia, where Baltika Breweries was a dominant force with approximately 30% market share.
This transition follows a tumultuous period beginning in July 2023, when Russia seized control of Baltika shares under a presidential mandate aimed at companies from nations deemed “unfriendly.” At the time, Carlsberg, a Danish brewing giant, was caught unawares, as it had not received any official notice regarding the decree or its implications for Baltika, a leading player in Russia’s brewing sector.
As part of the sale agreement, Carlsberg is set to regain the shares from its subsidiaries in Azerbaijan and Kazakhstan, with the transaction concluding in the coming days. This development underscores Carlsberg’s strategic efforts to safeguard its business interests and employees amidst geopolitical tensions. The chief executive of Carlsberg Group, Jacob Aarup-Andersen, affirmed that this decision represents the most feasible resolution given the prevailing circumstances, emphasising the protection of employees, business assets, and shareholder value.
The divestment also aims to resolve pending legal disputes and intellectual property concerns linked to Baltika Breweries, ensuring a smoother transition for all parties involved. This decision is in line with a broader trend of foreign corporations exiting Russia, as evidenced by Unilever and Danone’s recent divestitures amid similar pressures.
Carlsberg’s exit from Russia signifies a strategic retreat in response to complex geopolitical pressures, facilitating a resolution that aligns with its corporate priorities and ensures continuity for its stakeholders.
