Carlsberg has formally concluded its exit from Russia following the ratification of its asset sale agreement by Russian authorities.
Carlsberg has successfully divested its shares in Baltika Breweries, as confirmed by documents viewed by Reuters. The Russian government has sanctioned the sale of Carlsberg’s assets to the local entity, VG Invest, for a total of 34 billion roubles, equivalent to £252.5 million. This transaction is a significant development following the Russian state’s previous seizure of Baltika shares in July 2023 under a presidential decree targeting firms from so-called ‘unfriendly’ nations.
At the time of the seizure, Carlsberg had not been formally apprised by Russian officials about the implications of the decree on Baltika Breweries, a major player in the Russian beer market controlling roughly 30% of the market share. This unexpected intervention left Carlsberg navigating complex diplomatic and operational challenges to safeguard its interests and employees in Russia.
The recent approval of the asset sale has enabled the removal of the temporary state management previously overseeing Baltika Breweries. As part of the arrangement, Baltika will transfer its interests in Carlsberg Azerbaijan and Carlsberg Kazakhstan back to the Danish group, with the completion envisaged imminently. This move signifies a complete withdrawal of Carlsberg from direct operational involvement in Baltika.
This divestment marks the end of Carlsberg’s direct association with Baltika, having obtained necessary clearances from both Danish and Russian regulatory bodies. Carlsberg’s Chief Executive, Jacob Aarup-Andersen, affirmed that the decision effectively resolves ongoing legal and intellectual property disputes related to the brewer in Russia. ‘Since announcing our plan to withdraw from Russia in 2022, we have meticulously pursued all viable avenues to secure a total exit while ensuring the safety of our workforce, assets, and brand value,’ he stated. He expressed confidence that the outcome serves the best interests of all stakeholders involved.
This development is part of a wider exodus of international businesses from Russia amidst geopolitical tensions and economic sanctions. For instance, Unilever completed the sale of its Russian operations in October for over £320 million, and Danone similarly divested its Russian branch in March, incurring significant financial losses. These moves highlight the increasing difficulties and strategic decisions faced by multinational corporations operating in the region.
Carlsberg’s exit from Russia represents a strategic resolution to complex operational and geopolitical challenges, aligning with trends seen among global businesses exiting the Russian market.
