In a surprising turn of events in December 2024, Danish brewing giant Carlsberg managed to exit the Russian market by selling its subsidiary Baltika Breweries—an outcome that was carefully negotiated behind the scenes for months and included involvement from Denmark’s top civil servant at the Ministry of Industry (Erhvervsministeriet), new confidential documents reveal.
The documents, obtained by DR Nyheder, shed light on a process described as “top secret” (strengt fortroligt) and “extremely sensitive” (yderst følsomt), showing how Danish authorities and Carlsberg executives coordinated discreetly to engineer the sale of Baltika for 2.3 billion DKK (approx. 308 million EUR).
Carlsberg’s nationalisation trauma began in 2023
Carlsberg’s ordeal began in July 2023 when Russian President Vladimir Putin signed a decree seizing control of several Western-owned companies operating in Russia, including Baltika Breweries and the Russian subsidiary of French food group Danone. Although Carlsberg still held legal ownership of Baltika, it lost all influence over the company and was effectively sidelined.
By the end of 2023, Carlsberg had written off Baltika’s entire value, estimating it at zero. Before Russia’s full-scale invasion of Ukraine in 2022, the brewery had been valued at approximately 20 billion DKK (2.7 billion EUR).
A sudden opportunity—and a sensitive legal web
In late autumn 2024, a discreet opportunity emerged: two long-serving Baltika executives, Egor Guselnikov and Dmitry Vizir, proposed to buy the company through a firm called JSC VG Invest. Carlsberg’s Director for Global Trade Sanctions, Snorre Welling, flagged the proposal to Danish trade authorities in a confidential email dated October 22, 2024, stating:
“This is a case that is extremely sensitive from a commercial point of view. But what is much worse is that public knowledge of these details could affect our former colleagues’ legal proceedings.”
At the time, two former Baltika managers—Denis Sherstennikov and Anton Rogachevsky—were in Russian custody, facing charges related to alleged abuse of power. They ultimately received minor fines and avoided prison, but their fate hung in the balance during the delicate negotiations.
Austrian bank raises red flags, Denmark responds
One unexpected challenge came from Austria’s Raiffeisen Bank, a Western financial institution with a major presence in Russia. The bank questioned aspects of the sale’s legitimacy, prompting the Danish Business Authority (Erhvervsstyrelsen) to step in.
In a formal response, the authority clarified that it had conducted thorough due diligence and found no critical issues. Later, a high-level letter from Erhvervsministeriet’s permanent secretary Jens Brøchner confirmed that Carlsberg had received official clearance to proceed with the sale.
“On that basis, the Ministry of Industry takes positive note of the permission granted for Carlsberg Breweries A/S to sell its subsidiary in Russia,” Brøchner wrote.
This official backing helped ease Raiffeisen Bank’s concerns and cleared the path for the transaction.
Putin’s U-turn and final sale
In an unexpected move, President Putin signed another decree in early December 2024, officially restoring Carlsberg’s ownership of Baltika. The very next day, Carlsberg announced that it had sold the brewery to JSC VG Invest.
The deal allowed Carlsberg to recoup a small portion of its pre-nationalisation losses. According to the documents, the agreement also resolved all legal disputes between Carlsberg, the Russian state, and the current Baltika leadership.
The sale also marked the end of the road for Taimuraz Bolloev, the former Putin-appointed CEO of Baltika. He had been under EU sanctions since mid-2023 and, as Carlsberg confirmed in its communications, was not involved in the transaction.
A complex exit with geopolitical overtones
The Baltika saga is emblematic of the complex geopolitical risks Western firms have faced in Russia since the invasion of Ukraine. For Carlsberg, what initially appeared as a total loss eventually evolved into a strategic withdrawal involving diplomacy, discretion, and high-level political coordination.
Still, the price paid—2.3 billion DKK—represents just over 10% of Baltika’s pre-war value. Carlsberg declined to comment further on the negotiations, with spokesman Kenni Leth referring journalists to the company’s December 3 press release.
While the public saw only two days of news in December, months of shadow diplomacy, legal peril, and top-level government coordination had gone into engineering Carlsberg’s exit from the Russian market.
