Putin seizes control of AB InBev's Russian venture

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Russian president Vladimir Putin has enacted a decree placing shares of AB InBev Russian joint venture under temporary management.

This action, announced on a government website, reflects the ongoing complexities faced by Western companies in navigating the Russian market amid geopolitical tensions.

In April 2022, AB InBev, the world's largest brewer by volume, announced its intention to divest from its Russian operations, aiming to transfer its interests to Turkish partner Anadolu Efes. However, this proposed transaction was blocked by Russian authorities earlier this year, leaving the multinational brewer in a precarious position.

Under the decree published in April 2023, Putin has the authority to assign management of companies to local entities, granting them control over assets without the right to sell them.

The decree specifically mentions the transfer of over 15.8 billion ordinary shares and nearly 93 million privileged shares in the AB InBev/Anadolu Efes venture to a group of companies known as Vmeste, which was established in Moscow in August 2024.

AB InBev's Russian operations, which include eleven breweries and three malt complexes, once commanded a 25% share of the Russian beer market with brands like Klinskoe and Spaten. But the sector has been grappling with declining consumption and increasing regulatory pressures, further exacerbated by the fallout from Russia's invasion of Ukraine.

This move follows a broader trend where the Russian government has seized assets from other multinational food and beverage firms attempting to withdraw from the country.

Companies such as Carlsberg and Danone have also faced similar challenges, highlighting the difficulties that foreign businesses encounter in the current Russian economic landscape.