Heineken sells its Russian beer business for €1 billion.
The Dutch brewer said it will suffer a €300 million loss on the division, which will be sold to Russia’s Arnest, which manufactures aerosol cans.
When Russia invaded Ukraine last February, several Western companies abandoned their Russian operations.
Dolf van den Brink of Heineken commented, “It took much longer than we had hoped.”
“However,” the CEO and Chairman stated, “this transaction secures the livelihoods of our employees and allows us to exit the country responsibly.”
Arnest will buy seven breweries for €1 and hire 1,800 staff with promises of employment for the next three years.
The Amstel beer brand will be phased out over the next six months, joining Heineken lager, which will be phased out in 2022, according to the firm.
“Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia,” said Mr van den Brink.
President Vladimir Putin confiscated Russian assets owned by Carlsberg and French yoghurt company Danone last month.
Earlier this week, the franchise owner of Domino’s Pizza announced that it will close its Russian locations and declare bankruptcy.
Because of a “increasingly challenging environment,” DP Eurasia stated it would no longer try to sell the operation.
Since its tanks moved into Ukraine on February 24, 2022, Russia has been subjected to a slew of economic sanctions.
In the early wake of the invasion, many household names decided to lock their doors. Others, including McDonald’s and Coca-Cola, were under pressure to leave Russia.
There has also been persistent criticism of those who have remained in business.
Yale University’s School of Management has been keeping track of which companies have left and which have stayed. Those that have survived include UK telecoms business BT Group and Lacoste, the upscale French apparel brand.