Russian President Vladimir Putin has placed the Russian operations of AB InBev Efes B.V., a joint venture between Anadolu Efes (AEFES) and Anheuser-Busch InBev (AB InBev), under temporary state management. The move has effectively derailed the brewing giants’ plans to restructure their business in Russia amid ongoing geopolitical tensions.
Istanbul-listed Anadolu Efes announced the development to the market, revealing that an entity named GK Vmeste has been appointed as a trustee to oversee the operations. This decision marks the latest in a series of setbacks for foreign companies attempting to exit the Russian market since the onset of the Ukraine conflict.
The joint venture, AB InBev Efes, was established in 2018 as a 50:50 partnership between AB InBev, the world’s largest brewer, and Anadolu Efes, a Turkish beverage group. The company operates 11 production plants in Russia and three in Ukraine, holding a leading position in the Russian beer market.
A Troubled Exit Strategy
The brewing partners have been seeking to disentangle their Russian operations since April 2022, just two months after Russia’s full-scale invasion of Ukraine triggered sweeping Western sanctions. At the time, AB InBev announced it was in talks with Anadolu Efes to transfer its stake in the joint venture, aiming to distance itself from the Russian market.
However, in August 2024, Moscow rejected Anadolu Efes’ proposed acquisition of AB InBev’s stake in the Russian operations. Undeterred, the two companies devised an alternative plan in October 2024: a stake swap that would grant AB InBev full control of the Ukrainian operations and Anadolu Efes full control of the Russian operations.
Putin’s latest intervention has now scuttled this arrangement, leaving the future of the joint venture in limbo.
A Pattern of State Seizures
The move against AB InBev Efes is part of a broader trend of the Kremlin seizing assets of foreign companies attempting to exit Russia. By February 2024, only 9% of foreign firms operating in the country had successfully completed their exit, according to reports.
In 2023, Moscow took control of the Russian subsidiaries of French dairy producer Danone and Danish brewer Carlsberg. In December 2024, a Chechen official assumed control of Danone’s assets, while a close ally of Putin took over Carlsberg’s operations.
The Kremlin has also targeted other food and beverage companies, further complicating the efforts of multinational corporations to divest from Russia.
International Repercussions
The seizure of AB InBev Efes’ operations comes amid escalating tensions between Russia and Western nations. In a retaliatory move, Germany recently seized the stake held by Russian state-owned oil giant Rosneft in the Schwedt oil refinery, underscoring the tit-for-tat nature of asset seizures in the ongoing geopolitical standoff.
As the conflict in Ukraine continues to reshape global business dynamics, the fate of AB InBev Efes serves as a stark reminder of the challenges faced by multinational corporations navigating the complex and often hostile regulatory environment in Russia.
For now, the temporary management of AB InBev Efes’ Russian operations by GK Vmeste leaves the joint venture’s future uncertain, with no clear resolution in sight for the brewing partners.
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