Current:Home > NewsHeineken sells its Russia operations for 1 euro-LoTradeCoin
Heineken sells its Russia operations for 1 euro
View Date:2024-12-23 16:43:51
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More than 1,000 global companies have withdrawn or voluntarily curtailed operations in Russia so far, according to Yale University data.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! (477)
Related
- Garth Brooks wants to move his sexual assault case to federal court. How that could help the singer.
- Abortion pills should be easier to get. That doesn't mean that they will be
- See the Major Honor King Charles III Just Gave Queen Camilla
- Crack in North Carolina roller coaster was seen about six to 10 days before the ride was shut down
- Arbitrator upholds 5-year bans of Bad Bunny baseball agency leaders, cuts agent penalty to 3 years
- Chrissy Teigen Slams Critic Over Comments About Her Appearance
- How Olivia Wilde Is Subtly Supporting Harry Styles 7 Months After Breakup
- In Afghanistan, coal mining relies on the labor of children
- Kyle Richards Swears This Holiday Candle Is the Best Scent Ever and She Uses It All Year
- BP Pledges to Cut Oil and Gas Production 40 Percent by 2030, but Some Questions Remain
Ranking
- 2 dead in explosion at Kentucky factory that also damaged surrounding neighborhood
- NFL Star Ray Lewis' Son Ray Lewis III Dead at 28
- Eminem's Role in Daughter Alaina Scott's Wedding With Matt Moeller Revealed
- The Rest of the Story, 2022
- Zendaya Shares When She Feels Extra Safe With Boyfriend Tom Holland
- Inside Clean Energy: Tesla Gets Ever So Close to 400 Miles of Range
- Vermont police officer, 19, killed in high-speed crash with suspect she was chasing
- Young Voters, Motivated by Climate Change and Environmental Justice, Helped Propel Biden’s Campaign
Recommendation
-
Get Your Home Holiday-Ready & Decluttered With These Storage Solutions Starting at $14
-
Michael Cera Recalls How He Almost Married Aubrey Plaza
-
Chrissy Teigen Slams Critic Over Comments About Her Appearance
-
Belarusian Victoria Azarenka says it was unfair to be booed at Wimbledon after match with Ukrainian Elina Svitolina
-
Biden EPA to charge first-ever ‘methane fee’ for drilling waste by oil and gas companies
-
Man thought killed during Philadelphia mass shooting was actually slain two days earlier, authorities say
-
How Buying A Home Became A Key Way To Build Wealth In America
-
A Lawsuit Challenges the Tennessee Valley Authority’s New Program of ‘Never-Ending’ Contracts