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Brewers Heineken, Carlsberg pull out of Russia over Ukraine war

NETHERLANDS HEINEKEN
Posted at 1:12 PM, Mar 28, 2022
and last updated 2022-03-28 13:17:03-04

Two beer companies announced Monday that they are exiting Russia amid the country's invasion of Ukraine.

Dutch brewing company Heineken previously announced it had stopped new investments and exports to the country and stopped the brand's production, sale, and advertising.

But on Monday, they announced they were leaving the country.

"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," the company said in a news release. "As a result, we have decided to leave Russia."

The company added it would pay the salaries of its 1,800 employees in Russia through the end of 2022 and "will do our utmost to safeguard their future employment."

Heineken said they expect to take a hit that could cost them 400 million euros ($439 million).

Hours after Heineken announced it was leaving Russia, Danish brewery company Carlsberg announced it, too, would be leaving Russia.

The company said in a news release that it had taken "the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment."

According to the Associated Press, Carlsberg is the biggest exporter of Russian beer.

The two beer companies are one of many companies that have announced it was leaving Russia following its invasion of Ukraine.

Earlier this month, McDonald's, Starbucks, and Coca-Cola announced they were suspending operations in Russia.