Carlsberg finalizes exit from Russia with sale of Baltika Breweries
RUSSIA – Carlsberg has agreed to sell its Russian business, Baltika Breweries, marking the Danish brewing giant’s official exit from the country.
According to Reuters, the sale comes after Russia approved the deal, valued at 34 billion roubles (US$320.75 million), to VG Invest which is required to allocate 15% of the brewery’s market value to the Russian federal budget.
The buyer, VG Invest, is a newly registered company managed by Yegor Guselnikov, vice president at Baltika Breweries.
Carlsberg described the transaction as “a management buy-out,” with the company to be equally owned by two longstanding Baltika employees currently holding leadership roles.
The sale follows Russia’s seizure of Carlsberg’s stake in Baltika Breweries in July 2023, when the assets were placed under the “temporary management” of Rosimushchestvo, the Russian government property agency.
This action occurred after Carlsberg announced plans to exit Russia in response to Moscow’s invasion of Ukraine.
Carlsberg CEO Jacob Aarup-Andersen emphasized the complexity of the process, stating: “Since the announcement of our intention to leave Russia in 2022, we have exhausted all options to achieve a full exit from Russia while protecting our employees, our assets, and the value of the Carlsberg business.”
He added, “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.”
The deal, approved by Russian and Danish authorities, is set to close in the coming days.
While Carlsberg did not disclose the exact financial details, it confirmed it would receive cash compensation as well as shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan.
The company plans to share further financial details in its 2024 annual report.
In October 2023, Carlsberg wrote off the value of its Russian operations—estimated at nearly US$1 billion—after Moscow’s seizure of Baltika Breweries.
The group also terminated licensing agreements with Baltika for the production and sale of Carlsberg brands, leading to legal disputes, including a December 2023 court ruling invalidating Carlsberg’s actions.
Scores of foreign firms have left Russia since Moscow sent troops into Ukraine in February 2022, with Russia steadily tightening exit requirements.
Russia now demands sharp discounts on any foreign asset sales before giving approval and takes a portion of the sale price to bolster state coffers, dubbed an “exit tax” by Washington.
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