Heineken is transferring its Russia business to a new owner to mark its full exit from the country due to the nation’s invasion of Ukraine.
(Picture: PA Archive)Heineken, the world’s second biggest brewer, is exiting Russia completely after confirming it will relinquish its business there and join the corporate mass exodus.
The beer maker had already announced it would stop new investments and exports to Russia after the country invaded Ukraine, but has now gone a step further.
The company said it would “transfer” its regional business there to a new owner but would “not profit from any transfer of ownership”. The move is expected to cost it €400 million (£334 million) in impairments and other exceptional charges.
“Following the previously announced strategic review of our operations, we have concluded that Heineken’s ownership of the business in Russia is no longer sustainable nor viable in the current environment,” Heineken said. “As a result, we have decided to leave Russia.”
Heineken’s announcement comes after a raft of other firms quit Russia completely. Conducting business in the country has becoming increasingly untenable, with many consumers vowing to boycott firms that do.
A recent survey by consultancy Hanbury Strategy found almost two thirds of people are prepared to stop buying products or services from a company if they uncover a link to Russia.
Swiss food giant Nestlé recently caved to pressure and halted trading in Russia, opting to stop the sale of goods including Kit-Kats to Nesquik milkshake. French carmaker Renault also recently reversed its decision to remain in the country, shutting down its Moscow plant and considering the future of its stake in Russian car maker AVTOVAZ.
Heineken said it would take steps to protect its employees from hardship while a new owner is sought.
“In all circumstances, we guarantee the salaries of our 1,800 employees will be paid to the end of 2022 and will do our utmost to safeguard their future employment,” the company said.
Upon completion of the transfer, Heineken will no longer have any presence in Russia.
“We continue to hope that a path to a peaceful outcome emerges in the near term,” the company said.
