Carlsberg has cut all contact with its Russian operations and refuses to go ahead with a deal with the Russian government that would make the seizure of its assets appear legal, the brewer's new chief executive said today.
The Danish group had tried since last year to sell its Baltika subsidiary in Russia, following the example of many other Western companies leaving Russia after its invasion of Ukraine.
But after announcing in June that it had found a buyer for its business, Russian President Vladimir Putin ordered a month later to temporarily seize Carlsberg's stake in the local brewer.
"It cannot be ignored that they stole our business in Russia, and we are not going to help them make it look legitimate," said Jakob Aarup-Andersen, who took over as chief executive in September.
Carlsberg had eight breweries and approximately 8.400 employees in Russia.
Aarup-Andersen said that Carlsberg, since its limited contacts with Baltika management and Russian authorities since July, has not been able to find an acceptable solution.
"We are not going to enter into a transaction with the Russian government that somehow justifies the fact that they are taking control of our business illegally," he said on a conference call with reporters after the company's quarterly financial results were announced.
Source: RES-EAP