Heineken commits to exiting Russia after criticism about continued operations
“Heineken is committed to leaving Russia, and we’re doing everything we can to find a suitable new owner for business while taking care of our local employees,” the Dutch beer giant said in a statement published on Tuesday. Last month, Follow the Money reported that Heineken launched 61 products on the Russian market last year, despite promises to withdraw after Russia invaded Ukraine.
“We are shocked and saddened by the war in Ukraine,” Heineken said on Tuesday but added that the situation in Russia is “unprecedented,” and it faces many dilemmas in the “challenging and complex” business climate in the country.
While the company is committed to selling off its Russian activities as quickly as possible, Heineken is also responsible for looking after its around 1,800 employees in Russia, the company said. If Heineken simply closed its Russian operations, its employees would’ve been left without livelihoods. “Bankruptcy could also have led to criminal prosecutions of our managers,” Heineken said. “This is because ‘international bankruptcy’ is a criminal offense in Russia.”
The brewer also wanted to avoid Russia nationalizing its activities in the country. “First, we don’t think the Russian state or the people closest to it would have the best interest of our people at heart. Second, we were uncomfortable that the Russian state should benefit from a forced appropriation of major business assets.”
“We fully recognize that it’s frustrating that the sale is not yet completed,” Heineken said. “We’re also frustrated by how long the process is taking.” The company is “working hard to sell the business” and aims to reach an agreement with a new owner in the first half of 2023.
In the meantime, Heineken will continue to support aid organizations working on helping Ukrainian refugees fleeing the Russian invasion of their country, the company said. “Through a global fundraising effort, we contributed over €1 million, which enabled Habitat for Humanity to support over 4,500 refugees with free short-term accommodation, 1,200 with subsidized mid-term accommodation, and 10,000 with shelter services at the border. We also donated €700,000 to 20 local NGOs in the four neighboring countries.”
Follow the Money couldn't get Heineken to tell it how much it invested in Russia or how much tax it paid to the Russian authorities in 2022. But in 2019, the company paid almost 400 million euros in taxes in Russia.
