Investing.com - In a fresh escalation of its ongoing financial conflict with Western countries, Russia has taken control of the local branches of Carlsberg (CSE:CARLa) and Danone. This marks yet another retaliatory gesture against the sanctions placed on it by Western nations.
Russia's intensifying economic feud saw the Danish beer maker Carlsberg and French food giant Danone lose their local assets to government control. Both multinational firms had been planning to withdraw from Russia when this action was initiated.
The Russian authorities have temporarily assumed command over these companies' operations based on an order sanctioned by President Vladimir Putin last Sunday. This follows a similar incident where utilities owned by Germany’s Uniper and Finland’s Fortum were taken over following an April decree.
Prior to this unexpected development, both Carlsberg and Danone had plans underway to shift ownership of their Russian-based businesses as part of their exit strategy. When they were seized, Carlsberg was already in talks with a prospective buyer for approval from the Russian administration.
Carlsberg Group expressed surprise at this turnabout since they've always complied with all rules set out by local regulations in Russia. The company is now evaluating potential legal implications while vowing necessary actions in response to these developments.
Danone mirrored this sentiment, stating that they're currently examining the situation closely while taking steps aimed at safeguarding shareholder rights within Danone Russia along with ensuring business continuity.
As part of efforts to deter more Western corporations from leaving its borders, Kremlin previously imposed hefty discounts upon those trying to sell off their domestic ventures alongside levying an exit tax too.
However, recent asset seizures indicate that tensions are far from easing up between West and East; quite contrary - there seems a further amplification due largely because Moscow faced severe sanctions back in 2022 for instigating warfare against Ukraine plus utilizing energy supplies as strategic weaponry by halting crucial oil/gas flows towards Europe
Despite such conditions though around 400 major multinationals continue operating actively within Russia per Yale School Management study data whereas 523 major companies have permanently exited whilst another 503 temporarily halted their business activities.