GROZNY, Russia -- A nephew of the authoritarian ruler of Russia's North Caucasus region of Chechnya, Ramzan Kadyrov, has been made the new head of Danone's Russian operations after President Vladimir Putin signed a decree giving the state the right to "temporarily take over" the Paris-based multinational's subsidiary.
Chechnya's state television channel reported late on July 18 that 32-year-old Yakub (Ibragim) Zakriyev, who is Chechnya's agriculture minister, had been appointed as the new chief of Danone Russia.
SEE ALSO: Russia Takes Control Of Shares In Local Danone SubsidiaryAccording to decrees signed by Putin on July 16, the Russian government also "temporarily took over" Baltika breweries, owned by the Danish Carlsberg Group. Baltika will now be led by Taimuraz Bolloyev, a native of the North Caucasus region of North Ossetia.
Bolloyev used to lead Baltika in the early 2000s.
Danone said in a statement that it is "investigating the situation," while emphasizing that it is "preparing to take all necessary measures to protect its rights as shareholder of Danone Russia, and the continuity of the operations of the business in the interest of all stakeholders, in particular its employees."
Danone has said it planned to transfer control of its essential dairy and plant-based business in Russia, retaining only its infant nutrition operations.
Carlsberg Group also issued a statement, saying it had not received any official notification from Russian authorities about the move, calling it "unexpected."
"The Group will assess the legal and operational consequences of this development and take all necessary actions in response," the company's statement said.
Carlsberg Group said in March 2022, weeks after Russia launched its ongoing, full-scale invasion of Ukraine, that it will close its business in Russia. An agreement to sell the business was signed last month.
"Following the presidential decree, the prospects for this sales process are now highly uncertain,” Carlsberg Group added.
More than 1,000 Western companies have left Russia's market since the Russian invasion of Ukraine in February 2022.
Yakub Zakriyev is a son of Kadyrov's older sister Zulai. In 2018, when he was 27 years old, Zakriyev was appointed as the mayor of the Chechen capital, Grozny. In February 2020, Zakriyev became chief of the office of the regional leader and the government. Later in November that year he was appointed to the post of a deputy prime minister and agriculture minister of Chechnya.
In September last year, Kadyrov signed a decree on awarding Chechnya’s officials with medals "Centennial Anniversary of the Chechen Republic’s Foundation." At least 12 relatives of Kadyrov who are holding different official posts in the region were awarded with the medal.
There was no immediate comment from Zakriev on his appointment.
With reporting by TASS, ChGRTK, and Reuters
msh/ac