This is a response to the presidential decree issued on 16 July 2023 temporarily transferring management of Baltika to the Russian authorities.

There will be a limited run-off period stretching to 1 April 2024, where already existing stock and materials can be used up by Baltika.

We have now concluded that we currently see no path to a negotiated solution for exiting Russia. We refuse to be forced into a deal on unacceptable terms, justifying the illegitimate takeover of our business in Russia.

We are continuing to take all possible actions, including legal, to protect our employees, assets and operations.

It is unclear, what formally will be the next steps in relation to Baltika. As Carlsberg Group, we retain title to the shares in the company while the temporary management is transferred to the Russian state. What the Russian state chooses to do under these circumstances is not clear.

As a result, we will fully impair the value of our business in Russia. Impairment will be recognized in other comprehensive income in the full year accounts, not impacting the income statement.