Shares in Coca-Cola HBC rose on Friday after the bottler said it had received no notification from the Russian government of any changes to its operations in the country. The shares had tumbled on Thursday after reports that its Russian business could be seized or placed under state-controlled external management. The stock closed 3.36% higher at 4,188p on Friday, one of the FTSE 100's biggest risers on the day.

The petition behind the scare

Russian newspaper Kommersant reported that Altai-based drinks maker Bochkari had asked President Vladimir Putin to place Multon Partners and Multon JSC, Coca-Cola HBC's Russian subsidiaries, under external management, with Bochkari itself acting as interim manager. The request was submitted in mid-October. Multon Partners told the newspaper that a local management team runs the business and that it had received no notification of any such measures. Coca-Cola HBC said in a stock exchange filing that its Russian operations had been run locally on a self-standing basis since 2022, and that it "does not rely on income or capital from its Russian business to fund the group's operations outside Russia or to service the group's indebtedness".

A wider pattern of seizures

The scare comes as the Kremlin has moved against other foreign-owned businesses. President Putin recently signed a decree temporarily seizing the Russian assets of Japan Tobacco International, and Nestlé's Russian assets were seized in September. Coca-Cola HBC reported net sales revenue of €1.61 billion in Russia last year. The episode overshadowed an otherwise strong trading update: on 4 November the bottler reported organic revenue growth of 9.0% for the third quarter, with volumes up 5.4%. Its pending acquisition of Coca-Cola Beverages Africa remains on track for completion by the end of the year.

[Source: Sharecast](https://www.sharecast.com/news/news-and-announcements/ftse-coca-cola-hbc-russia-russian-business-russian-government--24066372.html) | [Source: Global Banking & Finance (Reuters)](https://www.globalbankingandfinance.com/bottler-coca-cola-hbc-notification-russia-asset-changes/)