Russia: Chechen agriculture minister to run seized Danone unit

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Danone's plant near Chekhov outside Moscow, Russia.Image source, Getty Images

Image caption,

A Danone factory in Russia

By Annabelle Liang

Business reporter

Moscow has appointed a Chechen minister as the new head of yoghurt maker Danone's Russian subsidiary, according to the Spark-Interfax database.

Yakub Zakriev is listed as the firm's general director on the Russia-based professional information platform.

He is a deputy prime minister and the agriculture minister of the Russian republic of Chechnya.

On Sunday, the Russian units of Danone and beer giant Carlsberg were put under "temporary management" of the state.

President Vladimir Putin introduced new rules this year allowing Moscow to seize the assets of companies from "unfriendly" countries.

It came after many major Western companies halted their operations in Russia following the invasion of Ukraine.

Before they were put under state control, Danone and Carlsberg were in the process of selling their Russian businesses.

Danone's operation in Russia 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 €1bn ($1.1bn; £861.7m) hit for the French company.

Mr Zakriev is reportedly the nephew of Chechen leader Ramzan Kadyrov - a key ally of President Putin.

He was appointed to the top job at Danone Russia on Tuesday, Russian media outlets reported.

It came as Taimuraz Bolloev was named as director of the Carlsberg's Russian unit Baltika Breweries, according to the Financial Times.

Kremlin spokesman Dmitry Peskov did not immediately respond to a BBC request for comment.

On Sunday, an order signed by Mr Putin placed the shares of Danone Russia and Carlsberg's Baltika Breweries under the control of Russian property agency Rosimushchestvo.

Danone, which started the process to sell its Russian business last October, said at the time that it was "investigating the situation".

Carlsberg said it had signed an agreement to sell Baltika Breweries last month but had not yet completed the deal.

The Danish brewer also said "the prospects for this sales process are now highly uncertain".

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.

Danone and Carlsberg did not immediately respond to BBC requests for comment.

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