Chechen Agriculture Minister Takes Over Danone's Russian Business -- 2nd Update
By Mauro Orru
Russia has appointed Chechnya's agriculture minister as the new
head of Danone's business in the country, ratcheting up pressure on
the French food company just days after President Vladimir Putin
signed a decree that effectively placed the business under
Yakub Zakriev, who is also Chechnya's deputy prime minister,
replaced Charlie Victor Henricus Cappetti as head of Danone's
Russian business, state news agency Tass reported late Tuesday. A
Russian company database, cited by Tass, named Zakriev as head of
Danone didn't immediately respond to a request for comment.
On Tuesday, Russian media also reported that Taimuraz Bolloev
would manage Baltika Breweries, the Russian business of Danish
brewer Carlsberg that was also the target of Putin's decree. A
Baltika Breweries spokesman confirmed Bolloev's appointment to The
Wall Street Journal.
Carlsberg said Wednesday in a statement that it no longer
retains control of Baltika's management or operations.
"The change to the management of Baltika Breweries has
consequently been made without the knowledge or approval by
Carlsberg Group," the company said.
Putin signed a decree on Sunday to take control of Danone and
Carlsberg's assets in the country, effectively handing stakes in
their Russian businesses to the Federal Agency for State Property
Management, a government body. The move is one of the most drastic
responses to the flight of Western companies from Russia in the
wake of the country's invasion of Ukraine. In April, Russia took
control of utilities owned by Germany's Uniper and Finland's
The latest seizures follow a decree signed in April that Putin
called a response to the unfriendly actions of governments that
have imposed a barrage of sanctions on Moscow. Last summer, Russia
took control of the international consortium behind the giant
Sakhalin-2 oil-and-natural-gas project in Russia's Far East that
counted the likes of Shell and Mitsubishi among its shareholders.
The Kremlin has long threatened to nationalize the assets of
companies that leave Russia. However, some businesses have kept
some operations in the country
Danone said Sunday that it was investigating the situation and
preparing to take all necessary steps to protect its rights as
shareholder of Danone Russia. Last year, the group launched a
process to transfer control of its essential dairy and
planted-based business in the country.
Carlsberg on Sunday called the decision to transfer Baltika
Breweries under temporary management unexpected, saying the group
would assess the legal and operational consequences and take all
necessary actions in response. Last month, Carlsberg agreed to sell
its Russian business without disclosing details, but prospects for
the sale process are now highly uncertain, it said.
Write to Mauro Orru at email@example.com; @MauroOrru94
(END) Dow Jones Newswires
July 19, 2023 04:14 ET (08:14 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Grafico Azioni Danone (EU:BN)
Da Gen 2024 a Feb 2024
Grafico Azioni Danone (EU:BN)
Da Feb 2023 a Feb 2024