Carlsberg and Heineken agree to suffer huge losses to leave Russian market

Danish brewing company Carlsberg (Carlsberg, Kronenbourg, Holsten, Tuborg, the owner of Baltika breweries) decided to leave Russia completely. In early March, Carlsberg suspended investments in production in the country.

"We have taken the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment. Upon completion we will have no presence in Russia.

"As a result of this decision, our business in Russia will no longer be included in the Group's revenue and operating profit. From an accounting perspective, the business will be treated as an asset held for sale until completion of the disposal," the company said in a statement.

The company apologized to its 8,400 Russian employees.

Prior to this, Carlsberg announced the termination of the production and sale of its beer brand in Russia.

Earlier, Dutch brewing concern Heineken also announced that it would leave Russia and deliver the business to a new owner. The concern will not receive profit from the transfer of ownership. Heineken expects to lose about €400 million. The new owner of the business has not been announced.

The company will also pay salaries to its 1,800 employees until the end of 2022 and will try to keep them employed. In Russia, Heineken produces beer under the brands Okhota, Three Bears, Bochkarev, Zhigulevskoye, Stepan Razin and others.

In early March, Heineken announced that it would stop making and selling beer under the Heineken brand in Russia; prior to that, the company announced the suspension of beer exports to the country.

On March 2, largest beer producers in the Czech Republic Plzensky Prazdroj (brands Pilsner Urquell, Velkopopovický Kozel and Gambrinus), Budejovicky Budvar (Budweiser Budvar), Staropramen and Bernard also decided to stop deliveries to Russia.