Carlsberg says Moscow stole its Russian business

Carlsberg has cut all ties with its Russian business and refuses to enter a deal with Russia's government that would make Moscow's seizure of the assets look legitimate, the brewer's new CEO said…

Carlsberg says Moscow stole its Russian business

Copenhagen -- Carlsberg's new CEO announced Tuesday that the company has severed all ties to its Russian business and refused to make a deal with the government of Russia in order to legitimize Moscow's seizure of assets.

Since last year, the Danish group has been trying to sell its Baltika subsidiaries in Russia. This follows in the footsteps of other Western companies that have left the country since its invasion of Ukraine.

After Carlsberg announced in June that they had found a buyer, Russian President Vladimir Putin ordered a temporary takeover of Carlsberg’s stakes in the local brewery the following month.

Jacob Aarup Andersen, the CEO who assumed his position in September, said: 'There's no way to avoid the fact that our business has been stolen in Russia. We won't help them look legit.

Carlsberg employed about 8,400 people in Russia and had eight breweries. Last year, the company wrote off 9.9 billion Danish crowns ($1.41 billion).

Aarup Andersen stated that Carlsberg, based on its limited interactions with Baltika management and Russian authorities from July, had been unable to find an acceptable solution.

He said this on a conference call with journalists after the company released its quarterly earnings report.

Carlsberg responded by terminating license agreements in Russia for its brands that had allowed Baltika, to produce, sell and market all Carlsberg beer in the country.

When these licenses expire with the grace period they are not allowed to manufacture any of our products anymore. Aarup Andersen said, 'I cannot guarantee this will happen, but it is what we expect.