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The world's largest producer of alcoholic beverages closes business subsidiaries in Russia
Diageo, the world's largest producer of alcoholic beverages, is determined to close its subsidiaries in Russia.
The company, which manufactures brands such as Guinness and Smirnoff vodka, said subsidiaries in Russia would be shut down over the next six months.
"Our focus will remain on supporting our employees in the region and providing extended redundancy conditions, ensuring that we comply with local regulations, " a Diageo spokesman said in a statement.
Foreign companies seeking to leave Russia because of the war in Ukraine face the possibility of passing a law in the coming weeks to allow Moscow to seize assets and impose criminal penalties. This has encouraged some businesses to expedite their departure.
Nike and Cisco announced plans to leave last Thursday.
Michelin also plans to hand over its Russian operations to a new unit under local management by the end of the year, becoming the first Western tire manufacturer to withdraw from business in Russia.