The president of Russia, Vladimir Putin, who places the shares of the foreign brewer AB InBev Efes Russia under the temporary management of Vmeste, a group of Russian companies. This measure affects the joint venture between the Belgian brewer AB InBev and Türkiye’s Anadolu Efes, launched in 2018, and has disrupted the company’s plans to leave the country through an agreement with Anadolu Efes.
The decision marks a turn in the plans of AB InBev, which had reached a agreement in October with Anadolu Efes to exchange stakes in its businesses in Russia and Ukraine. According to the agreement, the Turkish brewery was to become the sole owner of the Russian businesswhile AB InBev would take control of the Ukrainian unit.
However, Russian authorities intervened, opposing the sale and blocking the Belgian brewer’s plans. The decree signed by Putin grants Vmeste temporary management of AB InBev Efes Russia, although without the ability to dispose of the assets.
This measure is framed within a broader decree published in April 2023which allows the Russian government to intervene in the businesses of foreign companiesassuming control of their assets and companies without being allowed to sell or transfer said assets.
Uncertain future
The situation leaves AB InBev’s future in Russia in the air. While other large multinationals have managed to leave the Russian market, often by selling their assets below their real value, the Belgian brewer is now in an uncertain situation, similar to that of other foreign companies that have been forced to face resistance from the Kremlin to leave the country.
AB InBev Efes Russia es responsible for the production of popular brands in Russia as Bud, Bud Alcohol Free, Spaten, Efes Pilsener, Velkopopovický Kozel and Hoegaarden. Besides, controls 11 breweries in different Russian citiesincluding Vladivostok, Volzhsky, Kazan, Novosibirsk, Omsk and Ufa.
This movement also raises questions about the future of the agreement between AB InBev and Anadolu Efessince the Ukrainian part of the pact depends on regulatory approvals, including those from the Kremlin, which have so far not been obtained.
AB InBev Efes is the last of the three largest foreign beer producers still on the Russian market. The other two, Heineken and Carlsberg announced in 2022 their intention to sell their operations in Russia due to the impact of the war.
Heineken sold its assets in August 2023, while Carlsberg handed over its operations under temporary management. At the beginning of December, after the Danish brewer announced its sale.
