Heineken sells Russian operations for €1
The company originally promised to suspend its Russian operations after its invasion of Ukraine
Dutch beer manufacturer Heineken has packed up and left the Russian market.
Heineken announced the decision Friday, noting that it was selling its assets for a symbolic 1 euro, or about $1.08 in U.S. money.
"The transaction has received all the required approvals and concludes the process Heineken initiated in March 2022 to exit Russia, incurring an expected total cumulative loss of 300 million euros," the company announced.
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Bottles of Heineken beer are displayed in San Anselmo, California. (Justin Sullivan/Getty Images / Getty Images)
The company's facilities have been sold to Arnest Group, a major Russian manufacturing firm that produces cosmetics and household goods.
Heineken's decision fulfills a promise the beer company made over a year ago after the initial invasion of Ukraine.
An investigation by a Dutch news outlet earlier this year accused Heineken of failing to follow through on the commitment, but the company attributed its slow withdrawal to the process of securing jobs for its hundreds of employees.
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Bottles of Heineken beer travel along the production line at the Heineken NV brewery in Saint Petersburg, Russia. (Andrey Rudakov/Bloomberg via Getty Images / Getty Images)
Approximately 1,800 employees will be guaranteed employment by Arnest Group for three years, according to the deal.
"We are happy with this deal. We take good care of our people and leave in a responsible way," executive Dolf van den Brink told outlet Algemeen Dablad.
"I don't believe there is one other company that leaves Russia for 1 euro," he continued.
A sign sits above the entrance to the former Heineken NV brewery in St. Petersburg, Russia. Heineken reported estimate-beating sales growth boosted by a warm European summer as the world's third-largest brewer prepares to become a distant number two.
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Heineken joins many other major worldwide brands in withdrawing from the country following the invasion of Ukraine.
McDonald's, Coca-Cola and Starbucks have all suspended operations inside Russia and have sold off assets from their production facilities in the country.