Heineken reports complications in exiting the Russian market

Global beer producer Heineken has announced the difficulties it is facing with its planned exit from the Russian Federation, even after it managed to find a buyer for its Russian assets in April.

"Recent developments in Russia indicate that the process of obtaining approval to exit the country has become even more complicated. In April, we announced that we had submitted an application for approval of the transaction, and we continue to work hard to implement it. While we are actively working on our exit from Russia, our business remains financially secure," the company said on its website.

Heineken's first-half 2023 report notes the complete impairment of the company's Russian assets.

"We did not receive any financial profit from current operations, did not receive any profit from the sale of assets, and incurred impairment losses of €201 million (€88 million in December 2022 and €113 million in June 2023). As a result, as of June 30, 2023, the net book value of assets is zero," Heineken said.

Heineken emphasized that the company remains "fully committed to exiting Russia," but the timing of its exit does not depend on its control.

Earlier, Heineken planned to sell its Russian assets during the first half of 2023.

On March 5, 2022, Heineken stopped exporting beer to Russia, and a few days later stopped producing and selling its own-branded products in the Russian market, also refusing to advertise in Russia.