Carlsberg has completed its exit from Russia, having agreed to a sale of its shares in Baltika Breweries.

According to a government document seen by Reuters, Russia’s government has approved the sale of Carlsberg’s assets in Russia to local firm VG Invest for 34 billion roubles (£252.5m).

In July 2023, Russia seized control of shares belonging to Baltika under a presidential decree aimed at businesses from “unfriendly” countries.

At the time, the Danish brewer said it did not receive any official information from the Russian authorities regarding the decree or the consequences for Baltika Breweries, which is one of the country’s leading brewing companies and held around 30% of the market share.

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On Monday (2 December), the brewer’s assets were removed from temporary management by the Russian state and the current external management, which was put in place as Baltika management by the Russian authorities last year, will leave their positions.

As part of the new sale agreement, Baltika Breweries will transfer all its shareholdings in Carlsberg Azerbaijan and Carlsberg Kazakhstan to the Carlsberg Group, with the transaction expected to close within the next couple of days.

Prior to completion, the sale was approved by both Danish and Russian authorities, and with the divestment, the group will no longer have any ownership of shares in Baltika Breweries.

Carlsberg Group chief executive Jacob Aarup-Andersen said: “Since the announcement of our intention to leave Russia in 2022, we have exhausted all options to find a way to achieve a full exit from Russia while protecting our employees, our assets and the value of the Carlsberg business.

“With today’s announcement, we will settle numerous lawsuits and IP rights issues related to Baltika Breweries. Considering the circumstances, we believe it is the best achievable outcome for our employees, shareholders and the continued business.”

Scores of foreign businesses have left Russia in recent years, with Unilever in October ditching its Russian arm in a deal worth over £320m, while in March Danone was granted the regulatory approvals needed for the disposal of its Russian division, a loss that is understood to cost the FMCG £1bn (€1.2bn)