Heineken completes exit and sells Russian small business for $1

Heineken has announced its departure from Russia immediately after promoting its small business in the nation for a symbolic €1 ($1). The Dutch beer maker stated in a statement on Friday that it has received the needed approvals to sell its operations to the Arnest Group, a Russian brewer, ending the withdrawal approach it initiated in March 2022.

Heineken CEO Dolf van den Brink stated “current developments show the substantial challenges massive manufacturing businesses face in exiting Russia.” He added: “Though it took a great deal longer than we had hoped, this transaction secures the livelihoods of our staff and enables us to exit the nation in a accountable manner.” The brewery expects a total loss of 300 million euros ($323 million) from the small business.

When Moscow launched a complete-scale invasion of Ukraine in February 2022, a host of multinational businesses left Russia or announced plans to do so. But more than the previous 18 months, the Kremlin has produced it increasingly tricky for Western firms to sell their Russian assets. It now also obliges them to spend a hefty charge to the Russian government for such sales.

In March, Heineken stated it had decided to “do anything attainable” to keep away from the nationalization of its Russian small business, and exit the nation “as quickly as attainable.” The organization stated: “Initially, we do not believe that the Russian state or the persons closest to it have the very best interests of our persons at heart.” Second, we have been uncomfortable with the Russian state benefiting from the expropriation of massive small business assets.

The Arnest Group, which tends to make cosmetics, household goods and customer metal packaging, has offered all 1,800 Heineken staff in Russia with job guarantees for the subsequent 3 years as portion of the deal.