“We have concluded that Heineken’s ownership of the business in Russia is no longer sustainable nor viable in the current environment. As a result, we have decided to leave Russia,” the company said in a statement.
“We are shocked and deeply saddened to watch the war in Ukraine continue to unfold and intensify,” the company added.
The brewer of Moretti and Amstel said it was aiming to transfer the business to a new owner, while complying with Russian and international laws.
“To ensure the ongoing safety and wellbeing of our employees and to minimize the risk of nationalization, we concluded that it is essential that we continue with the recently reduced operations during this transition period,” it added.
The brewer said it will pay salaries to its 1,800 employees in Russia until the end of 2022 and “will do our utmost to safeguard their future employment.”
Heineken expects to take a €400 million ($439 million) hit from the move.
“Upon completion of the transfer Heineken will no longer have a presence in Russia,” the company said.
The company reported in February that its Russian beer volumes had grown by a few percentage points in 2021, driven by stronger demand for Heineken, Miller and Dr Diesel premium brands. It also reported growth for its market leading cider business in Russia.
Dozens of companies across all sectors of the economy have abandoned Russia or frozen their operations there since the invasion on Feb. 24.