Moscow has blocked Turkish brewer Anadolu Efes’ proposed deal to acquire AB InBev’s stake in a US$1.3 billion Russian joint venture. The deal would have enabled AB InBev, whose brands include Stella Artois and Budweiser, to exit the country as relations between the Kremlin and Western nations continue to deteriorate.

Russia has faced ongoing sanctions from the EU, US and other countries since its invasion of Ukraine in February 2022, and fears remain that the country will continue to seize foreign assets. Last year, Moscow took control of Danone’s Russian subsidiaries and Carlsberg’s Baltika Breweries.

Anadolu Efes said in a statement yesterday that the Russian authorities “have not approved the current structure of the transaction.” It added that, “Anadolu Efes and AB InBev are reviewing the authorities’ decision” and “updates will be duly announced.”

In the interim, the joint venture will continue to operate under the direction of Anadolu Efes’ management.

In 2022, Anadolu Efes announced it had agreed to purchase AB InBev’s non-controlling interest in AB InBev Efes by Efes Breweries International.

Shortly after Russia invaded Ukraine in 2022, AB InBev stated that it would forfeit “all financial benefit” from the Russian business and recorded a US$1.1 billion impairment on the joint venture.