In a significant move that has sent ripples through international business circles, Russian President Vladimir Putin has signed a decree transferring control of the Russian operations of Anadolu Efes, one of Türkiye’s largest alcoholic beverage producers, to a local entity. This development, announced at the close of 2024, marks a pivotal moment in the relationship between Russia and Türkiye, set against the backdrop of increasingly complex geopolitical maneuvers.
The Background
Anadolu Efes, through its joint venture with Anheuser-Busch InBev (AB InBev), has been a significant player in the Russian beer market since the establishment of AB InBev Efes in 2018. The venture included 11 breweries and was a dominant force, selling beer under brands like Klinskoe and Efes Pilsen. The decision to seize the assets followed months of regulatory challenges and failed attempts by AB InBev to exit Russia due to the Ukraine conflict, with Anadolu Efes poised to take over AB InBev’s share. However, this plan was rejected by Russian authorities, leading to the current scenario where control has been handed over to a new entity named “GK Vmeste”.
Economic and Market Impact
The immediate aftermath saw Anadolu Efes’s shares plummet on the Istanbul stock exchange, marking their sharpest decline in decades. This seizure not only affects Anadolu Efes’s financial standing but also sets a precedent for foreign investment in Russia. The move has been interpreted as part of Russia’s broader strategy to assert control over foreign assets within its borders, especially those from nations with whom it has strained relations.
Political Motivations
The question of whether this seizure could be seen as an act of revenge orchestrated by Turkish President Recep Tayyip Erdogan against Anadolu Efes’s biggest owner, Tuncay Özilhan, due to some underlying political disagreement, is complex. There’s no direct evidence linking Erdogan to this decision, but the timing and nature of the act suggest a potential geopolitical message. Turkey’s balancing act between its NATO obligations and its economic and diplomatic relations with Russia has been delicate. Erdogan’s administration has often been at odds with Western sanctions against Russia, choosing instead to navigate a path of economic cooperation with Moscow, often to the chagrin of its Western allies.
