New Delhi: Dutch brewing giant Heineken is exiting Russia, the latest in the long line of international companies that have shuttered in the country following its invasion of Ukraine.
The brewery had earlier announced it would stop new invests and exports to the country. The decision Monday will cost the company $439 million.
The company said in a statement: “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.”
“We are shocked and deeply saddened to watch the war in Ukraine continue to unfold and intensify,” said Heineken. It would not profit from any transfer of ownership, the company said.
The company has promised its 1,800-strong workforce salaries till the end of this year.
“We aim for an orderly transfer of our business to a new owner in full compliance with international and local laws. To ensure the ongoing safety and wellbeing of our employees and to minimise the risk of nationalisation, we concluded that it is essential that we continue with the recently reduced operations during this transition period,” it added.
Heineken — the third largest brewer in Russia — owns local brands Bochkarev, Okhota and Tri Medvedya.
Heineken’s exit puts pressure on its Danish rival Carlsberg, the owner of Russia’s biggest brewer, Baltika, Reuters said.
“Carlsberg, with a 27.3% local market share, is still selling beer under the Baltika brand but said earlier this month it had begun a strategic review of its business in the country and was suspending Russian brewing of its namesake brand of beer,” according to the news agency.
Ukraine President Volodymyr Zelenskyy has said companies that exit the Russian market will be given a “Peace Award”.
The presidential office announced Sunday these companies “deserve the respect of Ukrainians and people around the world. After all, indifference and silence are complicity”.
Andriy Yermak, head of the Office of the President, asked existing companies to “make the right choice”.
“It is impossible to support war crimes, it is inadmissible to conduct trade with war criminals and make money on the killing of civilians,” he said.
Also read: One in every two Ukrainian children displaced since Russian invasion, says UNICEF