The Russian authorities have made it harder for Western companies to leave the local market
President Vladimir Putin issued an order on Monday to give a local company control over AB InBev’s joint venture in Russia, thwarting the multinational brewery’s plan to exit the country via a deal with a Turkish partner. Moscow has temporarily nationalized local assets of several foreign corporations, including those of major beer producers.
AB InBev Efes, the venture operating in Russia, was formed in 2018 through a merger of the assets of Belgium-based AB InBev and Anadolu Efes of Türkiye. The merged firm runs 11 plants across the country. Its portfolio includes such brands as Bud, Hoegaarden, Stella Artois, Lowenbrau, Klinskoe, and Sibirskaya Korona.
According to the presidential decree, all shares of AB InBev Efes Russia are now under the temporary control of the Vmeste group of companies.
Earlier this year, Anadolu Efes and AB InBev, the world’s number one beer producer by output, agreed to swap stakes in their businesses in Russia and Ukraine. If approved by the Russian authorities, the deal would make the Turkish brewer the sole owner of the Russian business, while AB InBev would acquire the Ukrainian unit. The Belgium-based corporation had previously intended to dispose of both units through a sale to Anadolu Efes, but Moscow opposed the plan.
Turkish newspaper Patronlar Dunyası reported earlier this month that the deal was agreed upon verbally, and Anadolu Efes was expected to become the sole owner of AB InBev Efes.
Putting the joint venture under control of the Russian group sent shares in Anadolu Efes plummeting by 10% on Borsa Istanbul. Meanwhile, AB InBev shares dropped 1.5%.
A decree allowing for the temporary takeover of assets belonging to Russia-based foreign companies from “unfriendly” countries was signed by President Putin in April 2023. Kremlin has also adopted a regulation requiring foreign companies exiting the country to sell their assets at discounts of up to 50%.
Earlier this year, the Russian business of US-owned food maker Universal Beverage Company were temporarily nationalized, while its assets were seized and handed over to the Russian Federal Property Management Agency, Rosimushchestvo. In 2023, the local business of French food giant Danone, as well as Baltika Breweries, which was controlled by Danish beer giant Carlsberg Group, were also placed under the control of Rosimushchestvo.
