Putin Transfers Control of AB InBev’s Russian Unit to Local Company

On Monday, Russian President Vladimir Putin transferred ownership of AB InBev's local joint venture into the hands of a newly formed company named "GK Vmeste." The decree comes months after Anheuser-Busch unsuccessfully attempted to exit the country. Anheuser-Busch InBev, the largest beer producer in the world by volume, joined forces with Turkish brewer Anadolu Efes in 2018 to create the company AB InBev Efes Russia. The company controls 11 breweries and produces major brands including Bud, Efes Pilsener and Hoegaarden. In October, Anheuser-Busch and Anadolu Efes agreed to swap stakes; the Turkish brewer was slated to become the sole owner of the Russia-based business, while AB InBev would acquire its Ukrainian unit. Anheuser-Busch initially intended to sell its stake in both units, though Russian authorities reportedly rejected the deal. According to a decree passed on Monday, shares of AB InBev Efes Russia have now been transferred to the temporary management of the Vmeste group of companies. Little is known about Vmeste group, a Moscow-based firm reportedly created in August. Putin has been allowed to place "unfriendly" foreign companies in temporary management under the terms of a law passed in April 2023. The Russian President has used the authority on several occasions to stop businesses from fleeing the country. Brewing giant Carlsberg was prevented from selling its Baltika Breweries subsidiary in July 2023 after the state took control of the unit. Carlsberg chief executive Jacob Aarup-Andersen bluntly told the BBC that the government had "stolen our business in Russia." Earlier this month, Carlsberg was permitted to exit the country following the approval of a $320 million buyout. French yogurt maker Danone also saw its Russian unit seized after the company announced its intention to leave the country. As of Dec. 9th, former Chechen official Ruslan Alisultanov is the sole owner of Danone's Russian arm. Heineken was the only international brewing giant permitted to leave the country without a temporary management mandate. In August, the Dutch company sold its Russian business to aerosol maker Arnest for a single euro. [callout-app-promo]