stolen work
Danish brewer Carlsberg has severed all ties with its operations in Russia and will not accept a deal with Russian authorities that would legitimize the transfer of assets to the interim management of the Federal Property Management Agency, the company’s CEO Jacob Arup-Andersen said. .
“We cannot ignore the fact that they stole our business in Russia, and we will not help them legitimize it.”
— nail Speaking at the presentation of the report on the company’s quarterly results, Reuters agency Arup-Andersen.
According to him, the Russian beer company Baltika will lose the right to sell products under Carlsberg brands when the licensing agreements expire (i.e. from April 1, 2024).
The company’s report on Tuesday statedThat Carlsberg will continue to take all possible measures to protect its assets, employees and operations. Baltika-related investments no longer met the definition of an investment in the capital of the organization and were therefore reclassified as receivables from the Russian government and subsequently written off. The total amount was 7 billion kroner ($1 billion), the company said in a report.
Transfer of an asset
The decree on the transfer of Carlsberg’s stake in Baltika to the interim management of the Federal Property Management Agency was signed by Russian President Vladimir Putin on July 16, 2023. The head of state did this on the basis of a decree of April 25, 2023 on the temporary management of property of persons from “enemy” countries in the event of deprivation of property by Russia or Russian individuals and legal entities in these countries. . This decree covers the movable and immovable properties of foreign persons on Russian territory, their securities and their shares in the registered capital of Russian legal entities.
Almost a month before the transfer of shares in Baltika to the management of the Federal Property Management Agency, Carlsberg announced that it had found a new owner for its business in Russia. The company did not disclose the name of the buyer and the terms of the sale at that time. The agreement was never implemented. Former Carlsberg CEO Kees t’Hart said in August that news of Putin’s decision to transfer assets in Russia shocked the company’s management.
At the beginning of October, Carlsberg terminated licensing agreements with Baltika for the use of international and regional brands. These actions were in response to the transfer of assets in July. The trademarks in question are Tuborg, Kronenbourg, Seth & Riley’s Garage, Holsten and LAV.
On October 20, Baltika appealed to the arbitration court with a request to impose interim measures prohibiting Rospatent from registering the termination of trademark use rights. The court accepted the request of the Russian company.
Russian assets
The actions of the Russian authorities to dispose of the assets of foreign companies are a response to the actions of Western countries regarding Russian securities. Last week, the head of European diplomacy, Josep Borrell, was instructed to complete the preparation of proposals on a mechanism for using profits from Russian assets frozen by the European Union. The EU offers to transfer this money to support Ukraine.
The other day, State Duma Speaker Vyacheslav Volodin said that the theft of frozen Russian assets by Western states would require a symmetrical response from Moscow.
“A number of European politicians, led by European Commission President Ursula von der Leyen, are trying to stay in place. <…> They started talking again about the theft of our country’s frozen funds in order to continue the militarization of Kiev at their own expense. “Such a decision would require a symmetrical response from the Russian Federation,” he said.
As the Financial Times reported on October 31, Russian authorities have taken additional measures to limit the ability of Western companies leaving the country to generate revenue from the sale of assets denominated in foreign currencies. The publication wrote that now transactions with foreign companies can be postponed or partially blocked.
Russian President Press Secretary Dmitry Peskov on Tuesday announced the mechanism for the sale of assets in Russia by foreign companies. According to the Kremlin representative, companies will exit the market under the conditions determined by the government commission. “There can be no free exit anymore,” Peskov added.