Heineken to leave Russia in H1 2023
MOSCOW. Feb 27 (Interfax) - Heineken plans to exit Russia in the first half of 2023, although it is having difficulties with the sale of its Russian assets, the Dutch brewer said in a press release.
"It is challenging to close a transaction in Russia at the moment as rules continue to shift. We aren't dragging our feet and do wish things would move more quickly. With that said, all things remaining the same, we aim to reach an agreement in the first half of this year," the company said.
The company estimated the negative financial impact of the exit from Russia at about 300 million euros. The final loss will be determined when the Russian business is transferred to a new owner, Heineken said.
Heineken, which has seven breweries in Russia, announced in March 2022 that it was suspending new investment in and exports 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.
Heineken's portfolio includes about 300 brands, including Heineken, Amstel, Birra Moretti, Desperados, Foster's, Newcastle Brown Ale, Sagres, Sol, Star, Strongbow, Tecate and Tiger. National brands in Russia include Okhota, Zhigulevskoye and Stepan Razin, among others.
Difficulties leaving the Russian market were previously reported by Philip Morris International CEO Jacek Olczak in an interview with the Financial Times. He voiced doubts that this was even possible under current regulation of transactions involving foreign investors in Russia.