Vladimir Putin has reportedly revealed the Kremlin has no plans to seize assets in Russia owned by overseas companies.
Earlier this month, Moscow announced it had placed the Russian subsidiaries of Danish brewer Carlsberg and French food and beverage group Danone under the “temporary management” of government property agency Rosimushchestvo. Both Carlsberg and Danone were in the process of selling their operations in Russia.
According to news agency Interfax, Putin today (31 July) described those moves as “special” cases.
When asked at a briefing with journalists if there will be any similar moves in the near future, Putin reportedly added: “No, nothing like this is prepared at present.”
He added: “And the thing that happened [with the Carlsberg and Danone assets] was because the management of these companies attempted to pressure Russian citizens, their employees, threatening with possible layoffs in case they express a certain civil stance. Hopefully, no such thing repeats in the future.”
The Kremlin reportedly warned of more asset seizures in April, following the takeover of the Russian assets of Finland’s Fortum and Germany’s Uniper, two European state-owned utilities which both operate power plants in Russia.
Nevertheless, today Putin said: “In general, we are quite friendly towards our partners who do not want to leave Russia, we’re not seizing anything from anyone.
“No such thing is planned. The same thing [the lack of plans to transfer management of assets to the state] applies to the banking sectors [namely, subsidiaries of foreign banks in Russia]. We welcome those who want to work here and will assist them in any way.”
Just Drinks has contacted Carlsberg and Danone for comment on the Russian President’s statements.
The Tuborg brewer announced earlier this month that the Kremlin’s move was “unexpected” and that it would assess the “legal and operational consequences” of Russia’s actions.
Danone, meanwhile, said it was also investigating the decision.
Last week, the company asserted its legal ownership over the assets.
In a statement today alongside the publication of Danone’s half-year results, the French giant addressed the seizure of the assets, which it underlined centre on its Essential Dairy and Plant-Based (EDP) division.
“On July 18, 2023, the Russian authorities indicated that the board of directors and CEO of Danone Russia (EDP) had been changed. These changes took place without the knowledge of, or approval by, Danone. While Danone no longer retains control of the management of its EDP operations in Russia, it remains their legal owner,” the company said.
“Danone will continue to investigate the situation to understand the implications of the decisions of the Russian authorities on the ongoing EDP operations of Danone in Russia, as well as on the ongoing sale process. Danone will continue to provide information on material developments related to the situation of its EDP operations in Russia and keeps investigating how to protect its assets and its rights as shareholder, with a first priority to ensure people safety.”
Both Carlsberg and Danone were by no means alone in their continued presence in Russia before the Kremlin seized control of operations.
Earlier this month, a report from B4Ukraine, in conjunction with data from the Kyiv School of Economics, stated giant companies including PepsiCo and Nestlé are among the largest revenue earners still in Russia.
The FMCG sector, which reportedly generated $21.4bn last year, includes “major European brands Unilever, Danone and Nestlé, all of which have chosen to stay in Russia, although they have curtailed their activities since the invasion”, B4Ukraine said.
Mars and confectionery peer Mondelez International were also listed in the top ten of companies seeing the largest increase in Russia revenue last year – 8th and 9th, respectively, with $432m and $415m.
