RT.com
03 Oct 2023, 23:43 GMT+10
Carlsberg's business in the country was previously placed under temporary management
Carlsberg Group announced on Tuesday the termination of licensing agreements with its former Russian unit, Baltika Breweries, for the production and sale of the group's products, including international and local brands.
According to a statement on its website, the move was in response to the Russian government's temporary transfer of the company's business to the Federal Property Management Agency. The Danish brewer said at the time that it was shocked by the decision and promised to take "reciprocal steps."
There will be a limited run-off period stretching to April 1, 2024, in which Carlsberg's existing stock and materials can be used up by Baltika, the statement reads.
"We have now concluded that we currently see no path to a negotiated solution for exiting Russia. We refuse to be forced into a deal on unacceptable terms, justifying the illegitimate takeover of our business in Russia," the company stated.
On Monday, media outlets reported, citing relevant documents, that Baltika Breweries filed a lawsuit against Carlsberg in an attempt to preserve the licensing rights for the use of certain brands in the Russian market. It also reportedly asked the court to stop Carlsberg from initiating a process in Denmark to terminate the framework license agreement, explaining this was necessary due to potential significant losses the company would suffer as a result.
Carlsberg operated eight production facilities in Russia before announcing its exit from the country in March 2022 amid Western sanctions on Moscow.
Last year, the group took a $1.5 billion write-down on its Russian Baltika subsidiary. Under a Russian presidential decree, the Danish brewer retained ownership of the unit but no longer had any control or influence over it.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Hong Kong Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Hong Kong Herald.
More InformationAMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...
RIO DE JANEIRO, Brazil: At a two-day summit over the weekend, the BRICS bloc of emerging economies issued a joint declaration condemning...
DHARAMSHALA, India: The Dalai Lama turned 90 on July 6, celebrated by thousands of followers in the Himalayan town of Dharamshala,...
PARIS, France: French military and intelligence officials have accused China of orchestrating a covert campaign to damage the reputation...
CULVER CITY, California: TikTok is preparing to roll out a separate version of its app for U.S. users, as efforts to secure a sale...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
NEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
AMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...
NEW YORK, New York - U.S. stocks rebounded Tuesday with all the major indices gaining ground. Markets in the UK, Europe and Canada...
NEW YORK CITY, New York: Financial markets kicked off the week on a cautious note as President Donald Trump rolled out a fresh round...
RIO DE JANEIRO, Brazil: At a two-day summit over the weekend, the BRICS bloc of emerging economies issued a joint declaration condemning...