Tuesday, September 27, 2022

Heineken, Carlsberg exit Russia over Ukraine’s invasion

The company will take a hit of €400 million as it seeks “an orderly transfer” to a new business owner without profit.

• March 29, 2022
Heineken/Carlsberg
Heineken/Carlsberg

European brewing giants Heineken and Carlsberg have announced plans to exit Russia amid its ongoing war against Ukraine.

More economic woes await Russia for its Ukrainian invasion as international companies shut down operations to show solidarity with Ukraine, whose soldiers have been battling Russian forces since February 24.

The biggest beer brands, Heineken and Carlsberg, revealed plans to exit Russia, forfeiting the huge market they enjoy in the federation.

Heineken, with about 1,800 employees in Russia, disclosed that business was no longer sustainable amidst the war. The company will take a hit of €400 million as it seeks “an orderly transfer” to a new business owner without profit.

“We are shocked and deeply saddened to watch the war in Ukraine continue to unfold and intensify,” Heineken’s statement said. “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 nor viable in the current environment. As a result, we have decided to leave Russia.”

Heineken, however, assured employees of the payment of compensations to reduce the burden of transition.

“In all circumstances, we guarantee the salaries of our 1,800 employees will be paid to the end of 2022 and will do our utmost to safeguard their future employment,” it stated.

Carlsberg, with over 8,400 employees, disclosed that the brand’s exit was a difficult but necessary decision.

“The war in Ukraine and the escalating humanitarian and refugee crisis shocks us all. We continue to strongly condemn the Russian invasion, which has led to so much loss of life, devastation and human tragedy,” said Cees ‘t Hart, CEO of Carlsberg Group, in a statement.

“On March 9, we announced a strategic review of the Carlsberg Group’s presence in Russia. Based on this review, we have taken the difficult and immediate decision to seek a full disposal of our business in Russia,” added Mr Hart.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Nigerian Army Headquarters. [PHOTO CREDIT: Civil Military Affairs]

Hot news Home top

Suspected kidnappers nabbed, five people rescued: Nigerian Army

The 2 Brigade Nigerian Army in Uyo says its troops have arrested two suspected kidnappers and rescued five victims on Monday.

President Muhammadu Buhari

Education

Buhari regime mentally lazy, suffering from military hangover by forcing VCs to reopen universities: ASUU

“This is clearly a replica of, or a hangover from, a typical military administration,” said the ASUU coordinator.

Heading 2

Buhari regime keeps military pensioners waiting for their gratuities

“Our esteemed military retirees are please urged to remain calm and patient,” said the Military Pensions Board.

Mining site

Economy

2,119 mining companies in Nigeria did not pay royalties: RMAFC

“There is also the issue of underpayment of royalty by 25 enterprises that exported minerals in 2019 with no record of royalty payments,” RMAFC disclosed.

Heading 1

WTD: Nigeria not at war, Lai Mohammed tells regime’s opponents

“Anybody who has witnessed war will not wish for war or separation,” said Lai Mohammed.

Minister for Humanitarian Affairs, Disaster Management and Social Development, Hajiya Sadiya Umar Farouq.

Heading 4

Buhari regime promises to empower vulnerable Nigerians

“We are shifting away from just giving humanitarian relief to see how we can build the resilience of our people and empower them,” noted the humanitarian minister.