Russian President Vladimir Putin on December 30 signed a decree transferring shares of the foreign brewing company AB InBev Efes Russia to the temporary management of the Russia’s Vmeste group of companies.
The move places all the shares of AB InBev Efes Russia, a joint venture between the Belgian brewer and Anadolu Efes of Turkey that launched in 2018, under the temporary control of the Vmeste group, created in August.
The decree also upends the brewer’s plans to exit the country through a deal with Anadolu Efes.
Anadolu Efes and AB InBev agreed in October 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, according to Bloomberg.
After Moscow’s latest intervention, it isn’t clear whether AB InBev will eventually be able to fully exit the country as other Western companies have done.
SEE ALSO: Carlsberg CEO: Russia Has 'Stolen Our Business'Also unclear is the status of the Ukrainian part of the deal, which was conditional on regulatory approvals, including from the Kremlin, Bloomberg said.
AB InBev Efes produces major brands in Russia, including Bud, Bud Alcohol Free, Spaten, Efes Pilsener, Velkopopovický Kozel, and Hoegaarden. The company also controls 11 breweries in Russia, including operations in Vladivostok, Volzhsky, Kazan, Novosibirsk, Omsk and Ufa.
Putin has been able to place companies in temporary management under a decree published in April 2023. It grants the manager full control of the assets except for the ability to dispose of them.
Since many multinational companies began leaving Russia, the country has made it harder for them to exit using tactics such as seizing subsidiaries and requiring companies to sell far below their estimated value.
AB InBev Efes was the last of the three largest foreign beer producers still in the Russian market. The other two -- Dutch company Heineken and the Danish brewery Carlsberg -- said in March 2022 they would sell their businesses in Russia, both citing the war.
Heineken sold all its assets by August 2023. Around the same time Carlsberg Group was transferred to temporary management.
Putin in early December removed Carlsberg's assets from temporary management after and the company announced the sale of its assets in Russia, including the brewing company Baltika.