Current:Home > Contact-usHeineken sells its Russia operations for 1 euro-LoTradeCoin
Heineken sells its Russia operations for 1 euro
View Date:2024-12-25 08:59:52
Heineken has sold its business in Russia for one euro more than a year after it vowed to pull out of the country in response to Russia's invasion of Ukraine.
The Dutch brewer is taking a €300 million loss, or roughly $325 million, by selling its business to Russian manufacturer Arnest Group, making Heineken one of the latest companies to pull out of Russia since the start of the war in Ukraine in February 2022.
Heineken had faced criticism for the slow pace of its exit, which CEO Dolf van den Brink attributed to the company's efforts to protect its Russian employees during the sale process.
"While it took much longer than we had hoped, this transaction secures the livelihoods of our employees and allows us to exit the country in a responsible manner," he said in a statement on Friday.
More than 1,000 global companies have withdrawn or voluntarily curtailed operations in Russia so far, according to Yale University data.
The reality of exiting Russia is tougher than it may appear. Moscow has imposed increasingly stringent requirements for foreign businesses to exit the country after facing tough sanctions and the beginning of an exodus of companies last year.
The Russian government requires foreign companies to provide a 50% on their businesses after government-selected consultants value them, Reuters reported. It also requires foreign companies to contribute of 10% of their business' sale price to the Russian budget.
Heineken's sale covers all of its assets in Russia, including seven breweries. The company said that Arnest has guaranteed the employment of Heineken's 1,800 local staff for three years.
Heineken brand beer was removed from the Russian market last year. One of its other major brands, Amstel, will be phased out within six months, the company said.
The brewery isn't the only company to swallow big losses from bowing out of the Russian market. Last year, McDonalds said it expected to lose more than $1 billion to divest its Russia business.
The Associated Press contributed reporting.
- In:
- Sanctions
- Food & Drink
- Ukraine
- Russia
veryGood! (459)
Related
- Kentucky woman seeking abortion files lawsuit over state bans
- Khloe Kardashian Details Cosmetic Procedure That Helped Fill Her Cheek Indentation After Health Scare
- What we know about the Marine Corps F-35 crash, backyard ejection and what went wrong
- Tunisian president’s remarks on Storm Daniel have been denounced as antisemitic and prompt an uproar
- Denzel Washington teases retirement — and a role in 'Black Panther 3'
- Untangling the Deaths of Models Nichole Coats and Maleesa Mooney
- Jurors, witnesses in synagogue massacre trial faced threats from this white supremacist
- New Zealand rattled by magnitude 5.6 quake but no immediate reports of major damage or injuries
- What’s the secret to growing strong, healthy nails?
- France is rolling out the red carpet for King Charles III’s three-day state visit
Ranking
- Wreck of Navy destroyer USS Edsall known as 'the dancing mouse' found 80 years after sinking
- Mischa Barton Reflects on Healing and Changing 20 Years After The O.C.'s Premiere
- 3 more defendants seek to move their Georgia election cases to federal court
- Ryan Seacrest Shares Pat Sajak and Vanna White’s Advice for Hosting Wheel of Fortune
- Cold case arrest: Florida man being held in decades-old Massachusetts double murder
- Chanel Iman Gives Birth to Baby No. 3, First With NFL Star Davon Godchaux
- What to know about the search for Sergio Brown: Ex-NFL player missing, mother found dead
- Cheryl Burke Says She Has a Lot of Years to Make Up for Relationship With a Narcissist
Recommendation
-
Dramatic video shows Phoenix police rescue, pull man from car submerged in pool: Watch
-
Michigan’s top court won’t revive Flint water charges against 7 key figures
-
Speaker McCarthy faces an almost impossible task trying to unite House GOP and fund the government
-
Thousands of mink let loose from fur farm in Pennsylvania
-
How Alex Jones’ Infowars wound up in the hands of The Onion
-
Kansas mom, 2 sons found dead in a camper at a motocross competition
-
Prosecutor begins to review whether Minnesota trooper’s shooting of Black man was justified
-
Apple is moving to USB-C power cords. What you can do with the old Lightning cables.