Carlsberg loses contact with Russian employees after Kremlin asset seizures

Daniel Woolfson
Wed, 16 August 2023 

Carlsberg boss Cees ‘t Hart says the company was shocked by Russia’s decision to take control of its subsidiary business - Carsten Snejbjerg/Bloomberg

Carlsberg has lost contact with employees in Russia after its brewery was seized by the Kremlin, the drinks giant has said.

Cees ‘t Hart, Carlsberg’s chief executive, said on Tuesday that the Danish company was shocked by Russia’s decision to take control of its subsidiary Baltika Breweries last month.

The brewer had struck a deal to sell the business, which employs around 8,400 people in the country, but it was seized under a presidential decree signed by Vladimir Putin.


Mr ‘t Hart said it had “no indication” why the Russian state had taken over the business, adding that Carlsberg had “limited contact” with local authorities.

Carlsberg still technically owns the division but has no control over it.

“In June, we were pleased to announce the sale of the Russian business,” said Mr t’ Hart.

“However, shortly afterwards, we were shocked that a presidential decree had temporarily transferred management of the business to a Russian federal agency.”

Mr Putin has granted the Russian state new powers to seize assets from Western businesses as the war in Ukraine rages on.

Mr t’ Hart added: “We have known from the beginning, since announcing the intention to leave Russia in March of last year, that there was huge interest in the business from people inside Russia. But still, this is an unprecedented development.”

Dmitry Peskov, Mr Putin’s spokesman, told the Financial Times in June: “If a company doesn’t fulfil its obligations, then, of course, it goes in the category of naughty companies. We say goodbye to those companies. And what we do with their assets after that is our business.”

Many well-known companies have continued to do business in Russia since its invasion of Ukraine in February 2022 despite criticism.

Marmite and Dove owner Unilever was branded “an international sponsor of war” by the Ukrainian government last month for continuing to sell products in Russia.

Drinks giant Bacardi was also added to the Ukrainian National Agency for Corruption Prevention (NACP)’s list of alleged war sponsors this week for also failing to halt operations.

It comes as Carlsberg said on Wednesday that organic revenues rose by 11.2pc across its global business in the six months to June 30 – although the volume of beer it sold rose by under 1pc.