Heineken sells Russian arm of business for 86p

Global beer brand Heineken has sold its Russian arm of the business for 86p.

The sale comes after the Dutch-founded beer company pledged to quit Russia days after the country's invasion of Ukraine on 24 February 2022, when it said its business in the region was "no longer sustainable nor viable in the current environment".

The brewer, which also makes Amstel and Birra Moretti beers, said it will take a loss of £256m on the division, which is being offloaded to Russia's Arnest, which makes household goods and cosmetics.

Arnest has taken over Heineken's seven breweries in Russia and has pledged to guarantee the employment of Heineken's 1,800 local staff for the next three years.

Heineken chief executive Dolf van den Brink said the company's withdrawal took "much longer than we had hoped", adding: "[But] this transaction secures the livelihoods of our employees and allows us to exit the country in a responsible manner."

Many food and drink firms have pulled out of Russia following the invasion and the imposition of sanctions on Russia by Western governments.

Hospitality operators including Jamie Oliver Group and Compass Group pulled out of the country within weeks following the invasion of Ukraine, while the company that oversees Russia's Domino's Pizza brand signalled plans to close its restaurants earlier this week.