Carlsberg demands Russia to compensate for losses for Baltika – Kommersant

In early August, the Danish brewing company Carlsberg demanded compensation from the Russian government for the failure of the deal to sell Baltika, reports Interfax with reference to sources. The company expected to receive more than 71 billion rubles for the asset, but in July, President Vladimir Putin signed a decree transferring shares in Baltika to the temporary management of the Federal Property Management Agency.

According to the agency, Carlsberg classified the actions of the Russian Federation as a violation of obligations under the bilateral investment agreement and public international law. The company asked to “immediately inform whether the Russian Federation intends to pay compensation for losses and damages.” At the end of September, the Ministry of Finance sent a response letter to Carlsberg, which stated that the presidential decree was based on current Russian legislation, and there were no grounds for compensation for losses.

As Interfax sources stated, on October 13, Carlsberg sent to the Russian authorities, including the Ministry of Finance and the Ministry of Economy, “dispute notices” under three international agreements (Russian Federation treaties on the promotion and mutual protection of investments with Denmark and Sweden from 1993 and 1995 , as well as the Soviet treaty with Germany from 1989). Carlsberg called the action an “illegal expropriation” and offered to settle the dispute within six months. If negotiations do not bring results within six months from the date of the letter, the investor can submit the dispute to an international arbitration court.

The Ministry of Economy refused to comment on the information.

Carlsberg reported that the buyer of Baltika was to be the Arnest group, which had already bought the Russian assets of Heineken. But at the end of August, the framework agreement with Arnest structures was terminated due to the introduction of a temporary management regime in Baltika by the Federal Property Management Agency. 3 October Carlsberg reported, which terminated licensing agreements with Baltika. Carlsberg CEO Jakob Aarup-Andersen statedthat Russian authorities stole the company’s business.

Details are in the Kommersant FM publication. “Carlsberg does not rent out Baltika”.

Laura Keffer