E-Malt.com News article: 735

Russian brewer Baltika, owned by Baltic Beverage Holdings, the joint venture between Carlsberg and Scottish & Newcastle, has filed for bankruptcy for its Belarusian brewer Krinitsa. The move is an effort to compensate some of the US$10.5 million it has invested in the business, Russian newspaper Vedomosti reported in a statement.

In 2001 Belarus government and Baltika agreed that, in return for a controlling stake, Baltika would invest US$50 million in Krinitsa. However, the Belarusian government went back on the deal and cut Baltika's stake to only 30%. Baltika had at that stage already invested US$10.5 million.

The Belarus government has since recently said it opposed foreign investments in Belarusian breweries altogether.


07 March, 2003