AB InBev stays in Russia; Moscow doesn’t allow to stop the beer business

Brussels – Business goes on as usual for Belgian beer in Russia because Moscow won’t grant permission to disrupt it. There is a new chapter to the saga of AB InBev, the multinational ‘blond’ company based in Leuven, Belgium, that continues to embarrass the Belgians and enriches the Kremlin’s war machine. Russian authorities have rejected AB InBev’s request to exit the consortium with the Russians and sell their share to Turkey’s Anadolu Efes. The latter have reportedly said on several occasions that they would be willing to replace Ab InBev in the Russian beer market. However, “the necessary regulatory and governmental approvals” have not been obtained to complete the transaction, the Belgians admit.

Russia is essentially keeping the Belgian beer industry tied up and anchored in its homeland, against the stated wishes of the company, whose brands include Corona, Stella Artois, Budweiser, Beck’s, Birra del Borgo, Leffe, and Jupiler, the sponsor of Belgium’s top soccer league. AB InBev announced its intention to leave Russia in 2022 after Moscow declared war on Ukraine. An intention that has so far remained a dead letter due to commercial contracts and cumbersome and complicated legal issues.

From the Russian point of view, it is easy to understand the rationale for ensuring that the European partner remains present and active within the Federation. At the end of 2023, the multinational beer company reported revenues of $59.4 billion. A profitable, wealthy, stable partner that the Kremlin covets, and on which Russian authorities can exert pressure and offer a show of strength against EU sanctions, which would like to zero in on economic and trade relations with Putin’s Russia to stop its war machine. Instead, at least in this game, Putin’s Russia seems to have the upper hand.