Putin tightens grip on foreign-owned breweries in Russia
Vladimir Putin has taken control of breweries previously owned by Belgian and Turkish companies. This affects the company that produced beers such as Bud, Stella Artois, Löwenbräu, and Velkopopovický Kozel. Moscow has also assumed control of subsidiaries of companies attempting to exit Russia, including Carlsberg and Danone.
"By the end of 2024, President of Russia Vladimir Putin added the company InBev Efes to his list of acquisitions. This is one of the three largest beer producers in Russia and the last one that was still under foreign ownership," reports "Gazeta Wyborcza".
The company mentioned is a joint venture between the world's largest brewing conglomerate, Belgian Anheuser-Busch InBev, and the Turkish industry giant Anadolu Efes. It was placed under temporary but indefinite administration by the company GK Wmiestie.
InBev Efes owns 11 breweries and three malt houses that produced beers including Bud, Stella Artois, Löwenbräu, and Velkopopovický Kozel, according to "GW".
Putin closes doors to Western companies in Russia
The takeover of the breweries by the Russian president, specifically the imposition of mandatory management, is part of a broader strategy aimed at increasing control over key sectors of the economy.
Since Russia's invasion of Ukraine, Western corporations have either been attempting to leave the country with minimal financial losses or seeking ways to continue their operations while protecting their assets, profits, and personnel.
However, Russia has made the exit process more difficult for companies. Those wishing to withdraw must now accept a reduction in sale value by 60 per cent. Moscow has also taken control of subsidiaries of companies trying to leave the local market, including Carlsberg and Danone. It has effectively shut the door on the Belgian giant.
"In October, Anadolu Efes and AB InBev agreed to swap stakes in their businesses in Russia and Ukraine. Under the deal, the Turkish brewer would become the sole owner of the Russian business, while AB InBev would acquire the Ukrainian unit. AB InBev had previously wanted to sell control of both operations to Anadolu Efes, but Russia objected to that plan," writes Bloomberg.
