Heineken has sold its Russian business for just 86p – with the brewing giant set to face a total loss of £256m as a result.

The Dutch brewing giant, which also makes Amstel and Birra Moretti beers, has been criticised for the slow pace of its exit following the war in Ukraine.

Executives admitted the process “took much longer than we had hoped” and said looking after its local employees was a priority.

Heineken had initially announced it was quitting Russia in March 2022, and said its business there was “no longer sustainable nor viable in the current environment”.

Chief executive Dolf van den Brink said: “Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia.”

The Russian arm’s new owner, Arnest, has pledged to guarantee the employment of 1,800 local staff for the next three years.

Arnest Group owns a major can packaging business and is the largest Russian manufacturer of aerosols, as well as selling cosmetics and household goods.

Yevgeny Prigozhin’s ‘death’ seems to reveal a Russian principle – cross the Kremlin and it won’t end well

US imposes sanctions on people accused of helping to deport children from Ukraine

Prigozhin ‘dead’ – what next for Putin and Ukraine?

While Heineken-branded beer was pulled from shelves in the country last year, Amstel is still on sale and will only be phased out in the next six months.

Latest Russia news:
Kremlin denies killing Prigozhin – live updates
Putin critics who met untimely deaths

Please use Chrome browser for a more accessible video player

Many multinational companies flocked to leave Russia after the West imposed unprecedented sanctions on Moscow – but the Kremlin retaliated by seizing some assets.

Foreign firms trying to head for the exit are facing a big jump in costs as Russia demands bigger discounts on the price tags of the assets they want to sell, according to Reuters.

Last month, President Vladimir Putin signed a decree to take control of a Russian subsidiary operated by Danone, the French yoghurt maker, as well as Carlsberg’s stake in a local brewer.

Despite the multimillion-pound loss, Heineken believes the cut-price transaction will have a negligible impact on its full-year outlook.

Related posts:

Failure to tackle ‘hard edges’ of COVID-19 support, criticised by MPs Furlough aid must be phased out to prevent ‘deferred’ employment shock – IFS Ministers to ban ‘rewards for failure’ in governance crackdown Why paltry sum raised for Treasury in 5G spectrum auction is actually good news ‘Software queen’ Murria raises £130m as SPACs cross the Atlantic Channel 4 is no stranger to privatisation talk – but this feels different Two more energy suppliers collapse as pipeline delay prompts fresh gas price spike Public finances manage January surplus despite £6.1bn interest payment hit Number of pubs falls by 7,000 in a decade to lowest number on record 9 tips to reduce how much petrol or diesel you use amid record fuel prices London float on horizon for Wyoming silica miner Extrac Technologies Retail sales jumped 0.7% last month with sunshine boost helping beat expectations