Heineken leaving Russia, handing business to new local owner

MOSCOW. March 28 (Interfax) - Heineken, the second largest beer producer in the world, has decided to leave the Russian market and transfer its business in the country to a new local owner, the Dutch company announced.

"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. As a result, we have decided to leave Russia," the company said in a press release.

Until the Russian business is transferred to a new owner, all seven Heineken breweries in Russia will continue to operate so as to preserve jobs and service clients and consumers.

"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, adding that its priority remains to meet obligations to clients, partners and consumers.

Heineken said it will not profit from any transfer of ownership and expects an impairment and other non-cash exceptional charges of approximately 400 million euros.

Heineken announced earlier that it was suspending investment in and imports to Russia, as well as production and sales of its flagship Heineken brand. The company also announced that it would not accept any net financial benefits or profits from its business in Russia; all payments, royalties and dividends were suspended.