BATH, UNITED KINGDOM – FEBRUARY 01: In this photo illustration, a Russian rouble coin is seen besides a one Dollar bill note on February 1, 2025 in Bath, England. Although Russia’s rouble has recovered slightly from an all time low against the dollar since the early weeks of the full-scale invasion of Ukraine, the currency has remained weak because of renewed western sanctions and growing geopolitical tensions. (Photo by Matt Cardy/Getty Images)
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When Russia’s full-scale invasion of Ukraine began in February 2022, countries and organizations from around the world came together to discuss how they could punish the Kremlin for its aggression. Dozens of nations imposed sanctions on the Russian Federation. Russian politicians and oligarchs had their assets frozen or seized. Several Russian banks were removed from the international financial messaging system, commonly known as SWIFT. Russian energy companies were sanctioned. Russian airlines were banned from several European countries, as well as Canada and the United States, and thousands of companies worldwide chose to withdraw or suspend their operations in Russia.
The combined effects were significant, as the Russians lost billions of dollars. The World Bank noted that the Russian economy contracted by 2.1% in 2022, and the international community believed the economic decline would help force an end to the invasion of Ukraine.
But more than four years later, the Russian Federation’s incursion into Ukraine continues. One reason is that some international companies continue to conduct business in Russia. These companies employ workers, sell products, and pay Russian taxes. This activity generates rubles, which are funneled into the Russian economy, helping the Russian market stay afloat despite international sanctions.
A piece published by the Atlantic Council in June 2023 noted that by generating revenue for the Russian economy, these businesses are indirectly helping fund Russia’s invasion of Ukraine.
Some major international companies immediately suspended or terminated their operations in Russia when the invasion began. For example, in March 2022, CNBC reported that major food and beverage companies, including McDonald’s and Starbucks, terminated their operations in the Russian Federation. Meanwhile, according to a Yale University tracker that examines international companies and their business activities within Russia, companies such as Coca-Cola have suspended sales in the Russian Federation, while Kellogg has scaled back operations, and General Mills has held off on new investments.
Other companies pledged to either terminate or suspend their operations, but it took time to do so. Take, for example, Heineken. The Dutch company announced in March 2022 that it had decided to leave Russia. However, Reuters and The Guardian reported that the exit was not completed until August 2023, when Heineken sold its operations to Russia’s Arnest Group for one euro, with the buyer assuming roughly €100 million in intercompany debt. Meanwhile, Carlsberg did not leave the Russian Federation until 2024. The Danish company’s operations were seized in July 2023 and placed under temporary management after Carlsberg announced its plans to sell. The Russian Federation then approved a $320 million management buyout of the Carlsberg assets.
But there are other companies that have either stated that they would suspend operations without fully following through or have simply carried on doing business despite Russia’s war.
In April 2022, the beer giant AB InBev declared its intention to leave, told investors the country was no longer part of its strategy, and took a 1.1 billion euro impairment on its 50/50 joint venture with Turkey’s Anadolu Efes in Russia. It has attempted to offload its stake twice since then. The first try was a simple sale of its holdings to Anadolu Efes. The Russian government blocked that attempt. AB InBev then introduced a swap scheme whereby Anadolu Efes would receive AB InBev’s stake in their Russian joint venture in exchange for AB InBev acquiring Anadolu Efes Ukrainian holdings, but this deal was also rejected by the Russian government. (Anadolu Efes indicated the valuation had been set by KPMG at between $1.1 billion and $1.3 billion.)
Skeptics pointed out that neither deal amounted to much of an exit anyway, resembling a reshuffling of assets instead, since AB InBev itself holds a 24% stake in Anadolu Efes. It has been almost two years since the second deal was rejected, yet AB InBev has announced no new steps toward a withdrawal from Russia.
By the end of 2024, Radio Free Europe reported that Russian President Vladimir Putin signed a decree transferring management of AB InBev’s Russian business to a local company. AB InBev remained a co-owner of the business and retained the right to substantial future dividends should the political environment change.
In 2024, AB InBev’s Russian business grew revenue by 30%. That financial performance may explain AB InBev’s apparent reluctance to fully disengage.
To date, the company’s Russian business remains one of the largest taxpayers among businesses linked to foreign companies still operating in Russia. In 2025 alone, its tax and related payments to the Russian state budget—heavily geared toward sustaining the war effort—reportedly exceeded €1 billion. Moreover, according to a press release last month, AB InBev’s Russian business donated more than $6.5 million (RUB 500 million) in June to a state-aligned fund supporting Russian soldiers fighting in Ukraine.
While AB InBev’s founding Belgian and Brazilian families control roughly a third of the company through a Dutch foundation, BlackRock and Vanguard are listed among institutional investors in its remaining publicly traded shares. It is unclear whether they have raised concerns with the company over its continued financial exposure to Russia or used their influence as shareholders to seek greater transparency or a change in policy.
Rather ironically, AB InBev’s flagship brand is Budweiser, now marking 40 years as the FIFA World Cup’s Official Beer Sponsor. Yet it is present not only at the World Cup, but also on store shelves in Russia and the Russian-occupied territories in Ukraine.
To learn more about AB InBev’s attempts to sell its business in Russia, the author of this piece sent an inquiry to the Belgian company’s media team. At the time of publication, a representative from AB InBev has yet to respond.
AB InBev is not the only company that has continued to pay taxes and help keep the Russian economy afloat.
Nestlé said that it would restrict its offerings in Russia to only essential goods when the war began. But the Swiss newspaper Neue Zürcher Zeitung found that Nestlé continues to sell non-essential goods. Similarly, PepsiCo said it would suspend operations in Russia, but in 2024, the Business and Human Rights Center reported that the company opened a new factory in Russia. Additionally, in 2024, the Kyiv School of Economics, B4Ukraine, and other organizations found that PepsiCo paid $122 million in profit tax to Russia. Finally, Burger King reported that it does not have any company-owned restaurants in Russia, although the company does state that the Russian franchise “has not agreed to close the [Burger King] restaurants [in Russia] to date,” and that, as a result, “Burger King suspended all corporate support, including operational and marketing activities, to the Russian franchise and suspended supply chains to Russian restaurants. All Russia-related investments and expansion plans have been frozen.”
Meanwhile, as of July 13, Yale University reports that over 1,000 companies have voluntarily curtailed operations in the Russian Federation to comply with sanctions imposed by the international community. The list of corporations ending their business endeavors in Russia has continued to grow since the invasion began in February 2022, suggesting that more companies are joining the global response. As more organizations get on board, additional pressure is put on the Russian economy and Russia’s ability to finance the war in Ukraine. It has taken time, but senior Russian officials—including Russian President Vladimir Putin himself—are now acknowledging that the Russian Federation is facing economic consequences of the war.
No one is certain when or how Russia’s full-scale invasion of Ukraine will end. But it appears that the Russian Federation is now starting to feel the economic effects of international sanctions and of companies withdrawing. Should more companies exit or further reduce their activity, the pressure on Russia’s economy would likely increase.