Putin hands over control of AB InBev’s Russian unit to local firm

Russian President Vladimir Putin has handed control of the Anheuser-Busch InBev joint venture to a local company, upending the brewer’s bid to exit Russia through a deal with a Turkish partner plan.

A presidential decree issued on Monday said that all shares of AB InBev Efes Russia are now temporarily controlled by Vmeste Group of Companies, a joint venture between the Belgian brewer and Turkey’s Anadolu Efes , but did not reveal any details about Vmeste.

In October, Anadolu Efes and AB InBev agreed to swap stakes in their Russian and Ukrainian operations. Under the agreement, the Turkish brewer will become the sole owner of the Russian business, while Anheuser-Busch InBev will acquire the Ukrainian business. AB InBev had previously hoped to sell control of the two businesses to Anadolu Efes, but Russia opposed the plan.

After Moscow’s latest intervention, it is unclear whether Anheuser-Busch InBev will ultimately manage to exit the country, as other Western companies have managed to do after facing similar obstacles. Also unclear is the status of the Ukrainian portion of the deal, which is conditional on regulatory approval, including from the Kremlin.

Shares of AB InBev, the world’s largest beer maker, fell 1.5%. Anadolu Efes shares closed down 10%.

Since Russia’s full-scale invasion of Ukraine, Western multinationals have either scrambled to exit the country with minimal write-downs or found ways to continue operating there while protecting their assets, profits and employees.

Russia is making it harder for companies to leave. Those who want to exit now must accept a 60% discount on the selling price. Moscow has also seized subsidiaries of companies trying to leave, including Carlsberg SA and Danone SA.

The Danish brewer and French yogurt maker eventually regained control of its subsidiaries before selling them to a Kremlin-approved buyer. Earlier this month, Carlsberg agreed to sell its Russian unit, Baltika Breweries, a day after Putin signed a decree ending government control of the sector.

An AB InBev spokesman said the company had made a $1.1 billion impairment on the asset and would continue to work with its joint venture partners. A spokesman for Anadolu Efes did not respond to a request for comment.

With assistance from Beryl Ackermann.

This article was generated from automated news agency feeds without modifications to the text.