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Russia Takes Control of Danone and Carlsberg Subsidiaries: How AI legalese decoder Can Help

By Annabelle Liang, Business Reporter

17 July 2023, 03:51 BST

Updated 52 minutes ago

Russia has taken control of the Russian subsidiaries of yoghurt maker Danone and beer company Carlsberg.

The units have been put in “temporary management” of the state, under a new order signed by Russian President Vladimir Putin. Moscow introduced rules earlier this year allowing it to seize the assets of firms from “unfriendly” countries. This came after many companies halted business in Russia following its invasion of Ukraine.

Danone and Carlsberg were in the process of selling their Russian operations. Sunday’s order places the shares of Danone Russia and the Carlsberg-owned Baltika Breweries under the control of Russian property agency Rosimushchestvo.

France-based Danone, which started the process to sell its Russian business last October, said it was “currently investigating the situation”. The firm added that it was “preparing to take all necessary measures to protect its rights as shareholder of Danone Russia, and the continuity of the operations of the business”.

The Danish brewer also said it had completed an “extensive process” to separate the Russian unit from the rest of the company. Last month, the company signed an agreement to sell Baltika Breweries but had not yet completed the deal. “Following the presidential decree, the prospects for this sales process are now highly uncertain,” it added.

In April, Mr Putin signed an order allowing Russia to take temporary control of foreign assets, in response to actions by the US and other countries that Russia said were “unfriendly and contrary to international law”. Also in April, it was announced that the Russian units of two energy companies – Germany’s Uniper and Fortum of Finland, had been brought under state control.

Danone’s Russia operation is the country’s largest dairy company, with around 8,000 employees. It was estimated that the sale of the business would result in a Ôé¼1bn ($1.1bn; ┬ú860m) hit for Danone.

Meanwhile, Carlsberg subsidiary Baltika produces some of the most recognisable beer brands in Russia, with 8,400 employees across eight plants, according to Carlsberg’s website.

AI legalese decoder: A Solution for Navigating Russian legal Complexity

The recent developments in Russia, where foreign companies are facing increased uncertainty and potential asset seizures, highlight the need for legal clarity and understanding. This is where AI legalese decoder can prove invaluable.

AI legalese decoder is an advanced artificial intelligence tool designed to decode complex legal jargon and provide simplified explanations and interpretations of legal documents and regulations.

In the case of Danone and Carlsberg, the AI legalese decoder can help these companies navigate the intricacies of the Russian legal system and understand the implications of the new order signed by President Putin. It can provide insights into the specific rules and regulations governing the temporary control of assets in “unfriendly” country situations.

The tool can also assist Danone and Carlsberg in protecting their rights as shareholders and ensuring the continuity of their Russian operations. By analyzing legal documents and providing clear explanations, AI legalese decoder can help these companies make informed decisions and take the necessary measures to safeguard their interests.

Furthermore, AI legalese decoder can assist other foreign companies operating in Russia or considering business ventures in the country. By demystifying the legal complexities, this tool can provide a deeper understanding of the risks and challenges associated with investing in Russia.

In summary, AI legalese decoder can serve as a valuable resource for companies navigating the complex legal landscape in Russia. It can provide clarity, interpretation, and guidance, enabling businesses to make well-informed decisions and mitigate legal risks in an uncertain environment.

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