Putin transfers AB InBev Russia joint venture shares to local management

RUSSIA – Russian President Vladimir Putin has issued a decree placing shares of the AB InBev Russian joint venture under temporary local management.  

The decree, published on a government website, highlights the growing challenges Western companies face in maintaining operations in Russia amidst ongoing geopolitical tensions. 

The world’s largest brewer by volume, AB InBev, had announced plans in April 2022 to divest its Russian interests, seeking to transfer its stake to its Turkish partner, Anadolu Efes.  

However, earlier this year, Russian authorities blocked the transaction, leaving AB InBev’s exit plans unresolved. 

Under the decree, Putin has the authority to transfer management of foreign-owned assets to local entities. The assets cannot be sold but are handed over for administration.  

In this case, over 15.8 billion ordinary shares and nearly 93 million privileged shares in the AB InBev/Anadolu Efes venture have been assigned to a Moscow-based group of companies called Vmeste. The group was established in August 2024. 

AB InBev’s Russian operations include 11 breweries and 3 malt complexes, which previously held a 25% share of the country’s beer market. The portfolio includes popular brands such as Klinskoe and Spaten.  

However, the Russian beer market has been facing challenges due to declining consumption and increased regulatory pressures. The situation has been further complicated by the impact of Russia’s invasion of Ukraine. 

This move follows the Kremlin’s recent approval of the sale of Carlsberg’s Russian business to VG Invest, a newly registered company managed by Yegor Guselnikov, vice president of Baltika Breweries.  

The deal, valued at 34 billion roubles (US$320.75 million), requires VG Invest to allocate 15% of the brewery’s market value to the Russian federal budget. 

Carlsberg’s exit from Russia has been turbulent. After Russia placed its stake in Baltika Breweries under temporary management in July 2023, Carlsberg wrote off the value of its Russian operations, which amounted to nearly US$1 billion.  

The group also terminated licensing agreements for the production and sale of its brands, leading to legal disputes. 

Since Russia’s invasion of Ukraine in February 2022, scores of foreign companies have exited the country.  

However, Russia has tightened exit requirements, mandating steep discounts on foreign asset sales and claiming a portion of sale proceeds as what the U.S. government has termed an “exit tax.” 

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