Danish brewer Carlsberg has requested compensation from the Russian authorities for damages resulting from the transfer of the Baltika company to the management of the Federal Property Management Agency. Interfax with source reference. According to him, the relevant letter was sent in early August.
According to the agency, Carlsberg management in its appeal described the actions of Russian authorities as a violation of international law and obligations under the bilateral agreement. At the same time, the Ministry of Finance responded by stating that there was no room for compensation.
Another Interfax source said the concern sent official “notifications of disagreement” under three international agreements to Russian authorities in mid-October. The company offered to resolve the differences through negotiations but threatened to go to international court if a solution was not found within six months.
According to the source, the recipients of the notification include the Russian ministries of finance and economic development. The first did not respond to Interfax’s request, the second refused to comment on the sources’ information.
Carlsberg announced that it was withdrawing from the Russian market in March 2022 after the start of Russia’s military operation in Ukraine. In June 2023, the concern announced that it had signed an agreement to sell the Baltika company, but did not provide information about the potential buyer.
According to Interfax, Baltika was to be acquired by the Arnest group, which had previously purchased the assets of the Heineken brewery for €1, with the obligation to pay the “historical debt of Russian business” amounting to approximately €100 million. At the same time, according to the source, the price of Baltika was supposed to exceed 71 billion rubles.
The deal did not materialize because on July 16, Russian President Vladimir Putin transferred Carlsberg’s assets in the country to the management of the Federal Property Management Agency: this decision was made on the basis of a decree on the temporary management of individuals’ property. From the Russian Federation or “enemy” countries in case of deprivation of property of Russian individuals and legal entities in these countries.
“The job was stolen”
Carlsberg Group CEO Jacob Arup-Andersen accused Russian authorities of “stealing” the concern’s business. He announced that the company would not accept an agreement that would legalize the transfer of assets to the interim management of the Federal Property Management Agency.
“There is no denying the fact that they are stealing our business in Russia, and we will not help them legitimize it,” he said.
At the beginning of October, the company announced the termination of licensing agreements that allowed Baltika to produce and sell products from international brands, including Tuborg and Seth & Riley’s Garage. The Russian company will be able to sell its product reserves until April 1, 2024.
Shortly before that, Baltika went to St. Petersburg to prohibit Carlsberg from breaking the agreement. He appealed to the Arbitration Court of St. Petersburg and Leningrad Region.
“Fuck you, not the money!”
Russian Ministry of Finance in response to accusations from the Danish concern clarifiedIt was stated that Baltika does not belong to the state, the Federal Property Management Agency is the “interim administrator” and does not have the authority to dispose of the property.
“The implementation of interim management does not require a change in the ownership structure,” the ministry emphasized.
Minister of Finance Anton Siluanov explainedthat the introduction of external control was a response to sanctions imposed on Russia by unfriendly countries. He recalled that in the West, “work is actively underway” to create legal grounds for the seizure of assets of the Russian Federation and the illegal deprivation or limitation of property rights of Russian individuals and legal entities.
The head of the Ministry of Finance also added that external administration is initiated “in exceptional cases” if companies fail to comply with obligations or violate the laws of the Russian Federation.
Deputy Chairman of the Russian Security Council Dmitry Medvedev statedCarlsberg itself “gave up everything in Russia for political reasons, stopped work and materials and refused to fulfill its obligations.”
“We thought they would not be touched. We impose sanctions on you, we give weapons to the Ukrainian regime, but do not touch our property or at least sell it at a profit. Fuck you, not the money!” – Medvedev wrote in Telegram.
He also acknowledged concerns about “investments that currently benefit Russia.” The Deputy Chairman of the Security Council said that “a strong budget means assistance to the front” and that “frivolous Danes contribute modern Russian weapons.”