Putin tightens grip on foreign breweries and markets in Russia

"By the end of 2024, the President of Russia, Vladimir Putin, added the company InBev Efes to his list of acquisitions. This is one of the three largest beer producers in Russia and the last one still controlled by foreign capital," reports "Gazeta Wyborcza".

The company mentioned is a joint venture between the world's largest brewing conglomerate, the Belgian Anheuser-Busch InBev, and the Turkish industry giant Anadolu Efes. It has been transferred under temporary but indefinite administration to the company GK Wmiestie.

InBev Efes owns 11 breweries and three malt houses that produced beers including Bud, Stella Artois, Löwenbräu, and Velkopopovický Kozel, according to "GW".

The takeover of the breweries by the Russian president, specifically the imposition of mandatory management, is part of a broader strategy aimed at increasing control over key sectors of the economy.

Since Russia's invasion of Ukraine, Western corporations have either been trying to leave the country with minimal losses or seeking ways to continue operations while safeguarding their assets, profits, and personnel.

However, Russia has complicated the exit for companies. Those wishing to withdraw must now accept a reduction in sale value by 60 per cent. Moscow has also taken over subsidiaries of companies attempting to leave the local market, such as Carlsberg and Danone. It has now closed the door to the Belgian giant.

"In October, Anadolu Efes and AB InBev agreed to swap stakes in their businesses in Russia and Ukraine. Under the deal, the Turkish brewer would become the sole owner of the Russian business, while AB InBev would acquire the Ukrainian unit. AB InBev had previously wanted to sell control of both operations to Anadolu Efes, but Russia objected to that plan," writes Bloomberg.