Moscow assumes temporary command of another international beer corporation
Russia has taken control of AB InBev Efes’ joint venture, derailing the brewing giant's strategy to exit through a partnership with a Turkish firm. Read Full Article at RT.com
TroibNews 
The Russian government has implemented measures that complicate the exit of Western companies from the local market.
President Vladimir Putin issued a directive on Monday, assigning control of AB InBev’s joint venture in Russia to a local entity. This move effectively derailed the multinational brewery's plans to exit the Russian market through an agreement with a Turkish partner. Additionally, Moscow has temporarily nationalized the local assets of several foreign firms, including significant beer producers.
AB InBev Efes, which operates in Russia, was established in 2018 following the merger of assets between Belgium-based AB InBev and Turkey's Anadolu Efes. The joint venture manages 11 production facilities throughout the country and includes popular brands like Bud, Hoegaarden, Stella Artois, Lowenbrau, Klinskoe, and Sibirskaya Korona.
A presidential decree now places all shares of AB InBev Efes Russia under the temporary control of the Vmeste group of companies.
Earlier this year, Anadolu Efes and AB InBev, recognized as the world's leading beer producer, had reached an agreement to swap stakes in their operations in Russia and Ukraine. If this arrangement received approval from Russian authorities, it would result in Anadolu Efes becoming the sole proprietor of the Russian venture, while AB InBev would gain ownership of the Ukrainian operations. Previously, the Belgium-based corporation had aimed to sell both units to Anadolu Efes, but Moscow opposed this strategy.
Turkish publication Patronlar Dunyası reported that this deal was verbally agreed upon, with expectations for Anadolu Efes to take full ownership of AB InBev Efes.
As a result of placing the joint venture under the control of the Russian group, shares of Anadolu Efes plummeted 10% on Borsa Istanbul, while AB InBev shares fell by 1.5%.
In April 2023, President Putin signed a decree that permits the temporary takeover of assets owned by foreign companies based in “unfriendly” countries. The Kremlin has also instituted regulations mandating that foreign firms exiting Russia sell their assets at discounts of up to 50%.
This year, the Russian operations of the U.S.-based Universal Beverage Company were temporarily nationalized, with its assets transferred to the Russian Federal Property Management Agency, Rosimushchestvo. In 2023, other foreign businesses, including the local operations of French food giant Danone and Baltika Breweries, owned by Danish beer leader Carlsberg Group, were also placed under Rosimushchestvo's control.
Mark B Thomas contributed to this report for TROIB News
President Vladimir Putin issued a directive on Monday, assigning control of AB InBev’s joint venture in Russia to a local entity. This move effectively derailed the multinational brewery's plans to exit the Russian market through an agreement with a Turkish partner. Additionally, Moscow has temporarily nationalized the local assets of several foreign firms, including significant beer producers.
AB InBev Efes, which operates in Russia, was established in 2018 following the merger of assets between Belgium-based AB InBev and Turkey's Anadolu Efes. The joint venture manages 11 production facilities throughout the country and includes popular brands like Bud, Hoegaarden, Stella Artois, Lowenbrau, Klinskoe, and Sibirskaya Korona.
A presidential decree now places all shares of AB InBev Efes Russia under the temporary control of the Vmeste group of companies.
Earlier this year, Anadolu Efes and AB InBev, recognized as the world's leading beer producer, had reached an agreement to swap stakes in their operations in Russia and Ukraine. If this arrangement received approval from Russian authorities, it would result in Anadolu Efes becoming the sole proprietor of the Russian venture, while AB InBev would gain ownership of the Ukrainian operations. Previously, the Belgium-based corporation had aimed to sell both units to Anadolu Efes, but Moscow opposed this strategy.
Turkish publication Patronlar Dunyası reported that this deal was verbally agreed upon, with expectations for Anadolu Efes to take full ownership of AB InBev Efes.
As a result of placing the joint venture under the control of the Russian group, shares of Anadolu Efes plummeted 10% on Borsa Istanbul, while AB InBev shares fell by 1.5%.
In April 2023, President Putin signed a decree that permits the temporary takeover of assets owned by foreign companies based in “unfriendly” countries. The Kremlin has also instituted regulations mandating that foreign firms exiting Russia sell their assets at discounts of up to 50%.
This year, the Russian operations of the U.S.-based Universal Beverage Company were temporarily nationalized, with its assets transferred to the Russian Federal Property Management Agency, Rosimushchestvo. In 2023, other foreign businesses, including the local operations of French food giant Danone and Baltika Breweries, owned by Danish beer leader Carlsberg Group, were also placed under Rosimushchestvo's control.
Mark B Thomas contributed to this report for TROIB News
