Kremlin tightens grip on western companies
Before Vladimir Putin seized control of the Russian subsidiaries of Danone and Carlsberg this week, both companies were in the process of selling to local buyers. They are now effectively controlled by regime loyalists: Yakub Zakriev, a Chechen minister and a relation of Chechnya’s leader Ramzan Kadyrov, will run the yoghurt maker’s operations, while Taimuraz Bolloev, a close Putin ally, is the new head of Carlsberg’s Baltika brewery. After Moscow invaded Ukraine last year, a number of Western companies halted operations in Russia because of the risk of sanctions and reputational damage. Those that remain were later subjected to strict exit conditions: any sale must be at half price and Russia claims 10 per cent of sale proceeds for the federal budget. Now, one source tells the FT: “There is no system as to who gets permission to sell, even at a deep discount, and who simply loses everything. All that matters is whether the asset is valuable or wanted by someone close to Putin.”
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