Since Russia’s invasion of Ukraine, we’ve seen more than 400 Western companies make a mass exodus from the country.
With that being said, Heineken is the next company that’s looking to make their exit.
However, according to the New York Post, they are concerned that Russia will make an attempt to seize its local operations due to the effort.
The Dutch beer company is planning to sell off their business in Russia, after determining that it was:
“No longer sustainable nor viable in the current environment.”
However, Heineken will try to maintain limited operations in Russia, due to fears that Vladimir Putin might try to nationalize the business in retaliation.
The company said in a statement:
“We aim for an orderly transfer of our business to a new owner in full compliance with international and local laws.
To ensure the ongoing safety and wellbeing of our employees and to minimize the risk of nationalization, we concluded that it is essential that we continue with the recently reduced operations during this transition period.”
Heineken issued a warning weeks after Putin favored a plan to “introduce external management” to Western companies that left Russia due to the invasion, while transferring the enterprises that want to work.
Putin has constantly threatened retaliation to the companies seeking to leave.
The beer company previously said they would halt sales, advertising, and production in Russia, along with halting new investments and exports to the country.
They said they would “not profit from any transfer of ownership” of its Russia operations, and expects to lose $440 million in the process.
Company officials added:
“In all circumstances we guarantee the salaries of our 1,800 employees will be paid to the end of 2022 and will do our utmost to safeguard their future employment.”
Danish beer brand Carlsberg will be making the exit as well.