Breweries Brewers Carlsberg and Heineken will leave Russia altogether

Dutch brewer Heineken and its Danish competitor Carlsberg say they are withdrawing from the Russian market.

Both companies announced on Monday that they had completed a “strategic review” of their operations in Russia and concluded that they would leave Russia altogether.

Both beer companies have previously suspended sales of their brand names in Russia and stopped investing and exporting to Russia, the news agency AFP reports.

Heineken says in its press release that its leadership is shocked and saddened by the continuation and intensification of Russian hostilities in Ukraine. According to the company, doing business in Russia is no longer responsible or viable.

Heineken is seeking to transfer the discontinued business to a new owner and says it does not want to make a profit from the acquisition. The company estimates that the measure will result in impairment of EUR 400 million and other expenses.

Heineken has 1,800 employees in Russia. Their salary payments have been secured until the end of the year.

Carlsberg in turn, it employs 8,400 people in Russia, or about one-fifth of its global workforce.

CEO of Carlsberg Cees Hartt Hart says in a company statement that the war in Ukraine and the refugee crisis caused by it shock the company’s management. According to him, giving up Russian operations is the right way to operate in the current operating environment.

The company says it is valuing its Russian operations at fair value and causing a “significant” loss as a write-down.

The company intends to donate any profits from its Russian operations to aid organizations during the withdrawal process.