Russia: The seized Danone unit will be run by Chechnya's agriculture minister

a Danone factory outside of Moscow, Russia, near Chekhov

A Chechen minister has been appointed by Moscow to lead the Russian division of the yoghurt manufacturer Danone.

Yakub Zakriev has been appointed as Chechnya's deputy prime minister and minister of agriculture following Russia's takeover of the operations of the French company.

According to reports, Mr. Zakriev is the nephew of Vladimir Putin's top ally and Chechen leader Ramzan Kadyrov.

The Danone and Carlsberg Russian subsidiaries were placed under "temporary management" of the government on Sunday.

President Putin unveiled new regulations that permit Moscow to seize the assets of businesses from "hostile" nations.

Following the invasion of Ukraine, a large number of well-known Western corporations stopped doing business in Russia.

Danone and Carlsberg were in the process of selling their Russian businesses prior to being placed under state control.

Carlsberg stated that it was "unclear" what effects the development would have on the sale process as well as the ongoing operations of its Russian operation, Baltika Breweries.

According to estimates, the sale of the company would cost France-based Danone €1 billion (£861 point 7 million).

In the meantime, Taimuraz Bolloev was appointed director of Baltika Breweries, a Carlsberg company in Russia.

A BBC inquiry for comment was not immediately answered by Kremlin spokesman Dmitry Peskov.

Putin signed an order on Sunday giving Russian real estate agency Rosimushchestvo control over the shares of Carlsberg's Baltika Breweries and Danone Russia.

Danone announced at the time that it was "investigating the situation" when it began the process to sell its Russian business last October.

Carlsberg stated that although a contract to sell Baltika Breweries had been signed last month, the transaction had not yet been finalized.

"With the presidential decree's signing on July 16, 2023, Carlsberg Group no longer has any influence over the direction or management of Baltika Breweries. As a result, the management of Baltika Breweries was changed without the Carlsberg Group's knowledge or consent, according to Carlsberg.

According to the website of Carlsberg, Baltika employs 8,400 people across eight facilities to produce some of the most recognizable beer brands in Russia.

BBC inquiries for comment received no immediate response from Danone.

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