Heineken to pull out of Russia at cost of £334m

Heineken is to pull out of Russia in a move it said will cost it around 400 million euros (£334 million).

The Dutch brewing giant had previously said it would halt new investments and exports to Russia due to the invasion of Ukraine.

However, on Monday the company confirmed it will now join a raft of Western consumer brands in leaving Russia completely.

It said in a statement: “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.

“We aim for an orderly transfer of our business to a new owner in full compliance with international and local laws.”

Heineken added that it will continue with its recent reduced operations during the transition period as it seeks to “minimise” the risk of the business being nationalised.

It added that it will guarantee the salaries of its 1,800 workers in Russia will be paid until the end of 2022.

Heineken stressed it will “not profit” from any sale deal and expects impairment charges to total 400 million euros (£334 million).

“We continue to hope that a path to a peaceful outcome emerges in the near term,” the company added.

The move is expected to increase pressure on Danish rival Carlsberg, which runs Russia’s largest brewer, Baltika, to make a similar withdrawal.