Friday. 24.05.2024

Following the lead of its Dutch rival Heineken, Danish brewery Carlsberg on Monday announced its intention to withdraw completely from Russia due to the war in Ukraine.

"The war in Ukraine and the escalating humanitarian and refugee crisis shock us all," the company said, adding its deep condemnation of the Russian invasion and the deaths, devastation and human suffering it had caused.

The Carlsberg Group decided two and a half weeks ago that it would no longer produce or sell its main brand Carlsberg in Russia. However, following a strategic review of its presence in the country, the decision was made to sell the Russian business completely, Carlsberg wrote in a stock exchange release.

Once this process is completed, the company will no longer be represented in the country. Until then, operations would be maintained on a reduced scale, it said.

Any profit made in the interim would be donated to aid organizations, the company said, adding that it regretted the decision for its 8,400 employees in Russia.

Earlier on Monday, the Dutch brewer Heineken announced that it was withdrawing from the Russian market for good. Under the current circumstances, it was no longer possible to be active in the country, the company announced in Amsterdam on Monday.

While Heineken had already blocked new investments and exports following Russia's invasion of Ukraine on February 24, it said it would now seek an "orderly transfer" of its business to a new owner and estimated that the sale of its Russian entities would net the company a loss of around €400 million ($439.3 million).

Salaries guaranteed

Nonetheless, it said it would guarantee the salaries of its 1,800 employees in Russia up to the end of 2022.

Banking giant Credit Suisse announced on Monday that it would no longer be taking on new clients in Russia. A spokesperson confirmed that Credit Suisse was continuing to wind down its business activities in the country, as announced by the bank's management earlier this month following the Russian invasion of Ukraine.

It was assisting clients to unwind their Russia exposure and supporting staff to relocate elsewhere, it said.

At the end of 2021, the bank's lending volume in Russia stood at 848 million francs ($907 million), while the net assets of its Russian subsidiaries amounted to 195 million francs.

Carlsberg joins Heineken in announcing full withdrawal from Russia