The heads of Carlsberg’s Russian subsidiary, Baltika Breweries, Denis Sherstennikov and Anton Rogachevsky, have been arrested following the Kremlin’s takeover of the beer company in Russia. This development comes after Carlsberg ceased its operations in Russia last month due to the state’s seizure of Baltika in July.
The executives are facing fraud charges, which Carlsberg has dismissed as unfounded. The company expressed its dismay over the Russian state’s actions, which it described as an illegal takeover, and its subsequent targeting of innocent employees.
Carlsberg’s CEO, Jacob Aarup-Andersen, previously accused the Kremlin of “stealing our business in Russia”. The Danish brewer was in the process of divesting Baltika Breweries in an attempt to exit the Russian market when the government intervened and assumed control of the company.
Investigators allege that Sherstennikov and Rogachevsky fraudulently acquired intellectual property rights for Carlsberg Kazakhstan and Vista BWay Co, which were formerly owned by Baltika. These rights, valued at over 295 mn roubles (£2.65m), reportedly enabled Baltika to distribute its products to several Central Asian countries and Belarus.
Baltika, which operates 8 plants and employs 8,400 people, produces some of Russia’s most popular beer brands. However, following the invasion of Ukraine in February 2022, many Western companies, including Carlsberg, have faced increasing pressure to withdraw from Russia and cease operations.
Despite Carlsberg’s efforts to sell its Russian business, the Kremlin seized control of Baltika in July under a directive signed by President Vladimir Putin. This move was facilitated by new regulations permitting the seizure of assets from firms originating from “unfriendly” countries.
Carlsberg announced in October that it had terminated all license agreements with Baltika to produce, market, and sell its products in Russia. However, it is understood that Baltika appealed to the arbitration court to prevent Carlsberg from terminating the licensing agreement.
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