After almost eighteen months since its initial commitment, Heineken has successfully divested its Russian subsidiary for a mere €1 (equivalent to 86p).
The segment has been acquired by a Russian enterprise known as Arnest, recognized for its production of aerosol cans. Heineken, headquartered in the Netherlands, has confirmed that this move will incur a financial loss of €300 million.
In the aftermath of Russia’s military involvement in Ukraine in February of the previous year, numerous Western corporations disengaged from their operations within Russia.
Dolf van den Brink, the CEO and Chairman of Heineken, acknowledged the prolonged timeline, stating, “The duration exceeded our initial projections.”
He further explained that “this transaction safeguards the livelihoods of our personnel and enables us to depart the nation in a conscientious manner.”
“Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia,” Mr. van den Brink remarked.
President Vladimir Putin confiscated Russian assets belonging to Carlsberg and French yogurt manufacturer Danone last month.
The Domino’s Pizza franchise owner hinted earlier this week that it may close its locations in Russia and declare bankruptcy.
Due to a “increasingly challenging environment,” DP Eurasia stated that it will no longer attempt to sell the business.
Numerous economic sanctions have been placed against Russia since its tanks invaded Ukraine on February 24, 2022.
In the early aftermath of the invasion, many well-known brands decided to shut down. Coca-Cola and McDonald’s were among those under pressure to leave Russia.