Carlsberg's new CEO declared the complete disassociation of the company from its Russian business and their refusal to engage in any agreements with the Russian government that would legitimize the seizure of their assets. The Danish conglomerate had been attempting to sell its subsidiary, Baltika, in Russia since the previous year, aligning with the trend of Western corporations exiting Russia after the invasion of Ukraine.
In June, Carlsberg announced finding a buyer for its business in Russia. However, Russian President Vladimir Putin, the following month, ordered the temporary confiscation of Carlsberg's stake in the local brewer. Jacob Aarup-Andersen, who took on the role of CEO in September, emphasized that there was no alternative to the reality that their business in Russia had been unlawfully taken, and the company had no intention of aiding the Russian government in making the seizure appear legitimate.
Carlsberg had eight breweries and approximately 8,400 employees in Russia, leading to a write-down of 9.9bn Danish crowns ($1.41bn) for Baltika last year. Aarup-Andersen conveyed that, despite limited interactions with Baltika's management and Russian authorities since July, they had not been able to find an acceptable solution to the situation. He underscored the company's unwillingness to engage in transactions with the Russian government that would justify the illegal takeover, as revealed during a call with journalists following the company's quarterly earnings statement.
Earlier this month, Carlsberg responded by terminating the license agreements for its brands in Russia, which had permitted Baltika to produce, market, and sell all Carlsberg products in the country. Aarup-Andersen expressed the expectation that once these licenses expire, Baltika would no longer have the authority to produce their products.
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