Denis Sherstennikov and Anton Rogachev, key figures at Carlsberg's Russian subsidiary Baltika Breweries, were apprehended on Wednesday following the Kremlin's takeover of the beer
company in the country.
Carlsberg had terminated its operations in Russia a month ago after the state seized control of Baltika in July, prompting allegations of fraud against Sherstennikov and Rogachev. However, Carlsberg has vehemently dismissed these allegations, labeling them as false.
Expressing concern for the safety of its employees, Carlsberg condemned the arrests, denouncing the Russian state's actions as an unjustifiable seizure of their business. The company reiterated its commitment to supporting its employees amid these challenging circumstances.
The Danish brewer had been in the process of divesting Baltika Breweries as part of its exit from the Russian market before the government intervened and took control of the company.
The accusations against Sherstennikov and Rogachev pertain to alleged acquisition of intellectual property rights for Carlsberg-related companies, which investigators claim were acquired deceitfully from Baltika. These rights purportedly facilitated Baltika's product distribution in several countries.
Baltika, a producer of popular beer brands in Russia and employing around 8,400 individuals across eight plants, is a part of Carlsberg's portfolio, owning recognizable labels like Kronenbourg 1664, Tuborg, Brooklyn, and Somersby cider.
The situation unfolded against the backdrop of Western companies under pressure to cease operations in Russia post the Ukraine conflict. Carlsberg had taken steps to sell its Russian business, but the Kremlin's move to control Baltika in July disrupted these plans.
Carlsberg announced its intention to terminate licensing agreements in Russia by April 2024, leading to a legal tussle with Baltika appealing to the arbitration court to halt the termination of the licensing agreement.
Jacob Aarup-Andersen, the head of Carlsberg, emphasized the company's refusal to engage in any agreement with the Russian government that justifies the illegal takeover of their business. Photo by Queeste, Wikimedia commons.