Heineken faces €400m in costs as it looks to exit Russian business

Heineken has made the decision to exit its business in Russia, commenting that it is “shocked and deeply saddened to watch the war in Ukraine continue to unfold and intensify”.

In a company statement, the Dutch brewing giant said: “We earlier announced that Heineken stopped new investments and exports to Russia, ended the production, sale and advertising of the Heineken brand, and announced that we will not accept any net financial benefits or profit from our business in Russia”.

The company added: “Following the previously announced strategic review of our operations, 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.”

Heineken said it aims for an “orderly transfer” to a new owner and will continue with reduced operations during the transition period to ensure the safety and wellbeing of its employees, and to decrease the risk of nationalisation.

The company admitted that it would not profit from any transfer of ownership and that it expects to face costs of approximately €400 million as a result of its leaving the Russian market.

Additionally, the company says it will ensure the salaries of its 1,800 Russian employees will be paid by the end of this year.