Russian subsidiaries of Danone and Carlsberg will formally remain owned by their foreign shareholders, but in fact a state agency (Rosimushchestvo) will exercise most of their authority. In particular, the foreign owners will not be able to sell or otherwise dispose of these assets.

The power of the Russian state to impose temporary administration on the Russian assets of foreign companies was provided by Decree of the Russian President No. 302 dated 25 April 2023 “On Temporary Administration of Some Assets”.

The Decree contains no specific criteria as to which assets may be subject to temporary administration. A separate decision of the Russian President is issued once specific assets are included or excluded into the list of assets under temporary administration of the Russian state.

Once certain assets are included into the list, the temporary administrator (Rosimushchestvo), will exercise the powers of the assets’ owner. In particular, the temporary administrator has the power to make managerial decisions in companies subject to temporary administration (e.g. by appointing and removing corporate officers, making amendments to the charter, approving corporate transactions), but does not have the powers to dispose of assets (Decree of the President of the Russian Federation dated 16 July 2023 No. 520).