Russia Accused of Stealing Our Business in Disturbing Allegations

Carlsberg, the Danish brewer, announced on Tuesday that it has severed all ties with its Russian business and refuses to engage in a deal with the Russian government that would legitimize the seizure of its assets. This decision comes as many Western companies have been exiting Russia since its invasion of Ukraine.

Carlsberg had been attempting to sell its Russian subsidiary, Baltika, since last year. In June, the company announced that it had found a buyer for its business. However, in July, Russian President Vladimir Putin ordered the temporary seizure of Carlsberg’s stake in the local brewer.

Jacob Aarup-Andersen, who took over as CEO in September, stated, “There is no way around the fact that they have stolen our business in Russia, and we are not going to help them make that look legitimate.” Carlsberg had eight breweries and approximately 8,400 employees in Russia. Last year, the company took a write-down of 9.9 billion Danish crowns ($1.41 billion) on Baltika.

Aarup-Andersen explained that Carlsberg has had limited interactions with Baltika’s management and Russian authorities since July. Despite these interactions, the company has not been able to find an acceptable solution to the situation. Aarup-Andersen emphasized, “We’re not going to enter into a transaction with the Russian government that somehow justifies them taking over our business illegally.”

As a response to the situation, Carlsberg recently terminated license agreements for its brands in Russia. These agreements had allowed Baltika to produce, market, and sell all Carlsberg products in the country. Aarup-Andersen stated, “When these licenses run out with the grace period, they’re not allowed to produce any of our products anymore. Of course, I cannot guarantee that happens, but that is our expectation.”

Carlsberg’s decision to cut ties with its Russian business and refuse to engage in a deal with the Russian government reflects its strong stance against the seizure of its assets.