Dutch beer maker Heineken announced on Monday that it is withdrawing from Russia, thus joining the list of Western companies leaving the Russian market in the wake of the Ukraine invasion.
The world’s second-largest brewer had already suspended sales and production of its brand in Russia and halted new investments and exports to the country this month.
“We are very shocked and very sad to see that the war in Ukraine continues and is escalating,” Heineken said in a statement.
“Following the previously announced strategic review of our operations, we have concluded that Heineken’s ownership of the business in Russia is no longer sustainable or long-lasting in the current context,” the company said.
Heineken indicated that it is looking for “an orderly transfer” of its businesses to a new owner, in accordance with international and local laws, and stated that it does not want to benefit from the transaction, which will cost the company some 400 million euros (438 million dollars) in exceptional charges.
The company clarified that it will continue to operate on a reduced basis during a transition period, to reduce the risk of nationalization and to “guarantee the continued safety and well-being of its employees.”
“Under any circumstances we will guarantee the salaries of our 1,800 employees who will continue to receive salaries until the end of 2022 and we will do what we can to safeguard their future jobs,” he added.
Hundreds of Western companies have closed their stores and offices in Russia since the war began, including major brands like Ikea, Coca-Cola and MacDonald’s.
