Danish brewer Carlsberg announced on Tuesday (October 31) that it has terminated its business in Russia after the Kremlin took control of its operations in the country.
The BBC reported that the company refused to be "forced into a deal on unacceptable terms to justify the illegitimate takeover" of its Russian businesses.
It was previously reported that the brewer was already in the process of selling its subsidiary Baltika Breweries in Russia before the state took over the business's management in July.
Carlsberg Boss: Russia Stole our Business
According to Carlsberg CEO Jacob Aarup-Andersen, the Kremlin stole its Russian business and the move to quit was its response.
"We are not going to help them make that look legitimate," he said.
Since the invasion of Ukraine in February last year, many Western firms have been pressured to leave Russia and shut down their operations there.
Carlsberg was one of many trying to sell its business in the country and said in June last year that it had signed an agreement to sell Baltika Breweries but had not yet completed the deal.
However, in July, Russian President Vladimir Putin signed an order legitimizing its control of Baltika after passing regulations allowing the Kremlin to seize the assets of firms from "unfriendly" countries.
Baltika Beyond Kremlin Acquisition
Baltika is one of Russia's largest beer companies, producing some of the famous beer brands in Russia, such as Kronenbourg 1664, Tuborg, Brooklyn, and Somersby.
According to Carlsberg's website, the subsidiary has 8,400 employees across eight plants.
After Carlsberg's decision, it said it could not see a "viable path to a negotiated solution for exiting Russia."
"We're not going to enter into a transaction with the Russian government that somehow justifies them taking over our business illegally," Aarup-Andersen added.
The company also said it had informed Baltika that it had terminated all of its license agreements to produce, market, and sell its products in the country, but said there would be a run-off period until 1 April 2024 while existing stock is used up.
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