Moscow approves sale of Carlsberg’s Russian assets for €300mn

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Moscow has approved a €300mn deal to sell the Russian assets of Danish brewer Carlsberg to a local company, according to government documents seen by the Financial Times. 

Russia took control of Carlsberg’s subsidiary Baltika Breweries in July 2023 and placed the company under “temporary management”. In October that year, Carlsberg said it had written off the business and accused the Russian government of having “stolen” Baltika.

The Kremlin put tight restrictions on Western companies that wished to leave the Russian market following the full-scale invasion of Ukraine, often refusing to approve foreign asset sales unless offered sharp discounts.

The government document shows that Baltika will be sold to VG Invest for Rbs34bn roubles (€300mn).

In a statement on Tuesday, Carlsberg said that it would receive cash as part of the deal, but did not specify how much. It will also take control of Baltika Breweries’ shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan.

Carlsberg chief executive Jacob Aarup-Andersen said: “With today’s announcement, we will settle numerous lawsuits and IP rights issues related to Baltika Breweries. Considering the circumstances, we believe it is the best achievable outcome for our employees, shareholders and the continued business.”