Global brewer Heineken has completed its exit from Russia, incurring a total cumulative loss of €300m on the deal.
It has sold its Russia operations to Arnest Group for a nominal price of €1, having first initiated its exit in March 2022.
All remaining assets in the country, including seven breweries, will transfer to the new owners.
Arnest Group has taken responsibility for the 1,800 employees in Russia, providing employment guarantees for the next three years.
In addition to the Heineken brand, which was removed from Russia in 2022, production of Amstel will be phased out within six months.
No other international brands will be licensed in Russia, with the exception of a three-year licence for some smaller regional brands which are required to ensure business continuity and secure transaction approval.
Heineken said it will provide no brand support and will receive no proceeds, royalties or fees from Russia.
As a result of exiting the country, Heineken expects total non-cash exceptional losses amounting to €300m including cumulative foreign exchange losses relating to Russia currently recorded in equity.
This figure includes a commitment from Arnest Group to repay the historical intercompany debt of the Russian business, of approximately €100m, due to Heineken in instalments.
“We have now completed our exit from Russia,” said Heineken CEO and chairman of the executive board Dolf van den Brink. “Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia.
“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.”
Arnest Group owns a major can packaging business and is the largest Russian manufacturer of cosmetics, household goods and metal packaging for the fmcg sector.
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