Moscow controls a Russian subsidiary of Danone and Carlsberg’s stake in the brewery

MOSCOW (Reuters) – The Russian state has taken control of French yoghurt maker Danone’s (DANO.PA) Russian subsidiary along with beer company Carlsberg (CARLb.CO) in a local brewery, according to a decree signed by President Vladimir. Putin on Sunday.

The decree said foreign-owned stakes in Danone Russia and Poltika Breweries were placed under “temporary management” of the state real estate agency Rosimushchestvo.

It comes after the Russian subsidiaries of Germany’s Uniper (UN01.DE) and Finland’s Fortum (FORTUM.HE) were brought under state control in April.

The Kremlin warned at the time that it might seize more Western assets on what it said was a temporary basis in retaliation for foreign moves against Russian companies abroad after Moscow sent thousands of its troops to Ukraine last year.

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

It added that the prospects of completely disposing of its Russia business were now highly uncertain. Carlsberg said in June it had signed an agreement to sell its Russia business, subject to regulatory approvals.

Danone said in a statement that it is investigating the matter, adding that the Kremlin’s decision will have no impact on its financial guidance for 2023.

The French company said last October that it was looking for a buyer for its dairy business in Russia, in a deal that could result in a writedown of up to 1 billion euros ($1.12 billion).

($1 = 1.1227 euros)

(Reporting by Caleb Davis and Daria Korsunskaya); Additional reporting by Louise Brioche Rasmussen in Copenhagen and Lavanya Sushil Ahir in Bengaluru. Editing by Andrew Osborne and Emilia Sithole Matares

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