Carlsberg shuts down at two Ukrainian breweries


The Danish brewery Carlsberg temporarily closed two of the Ukrainian breweries on Thursday as Russian troops advanced extensively in the country and disrupted the supply chain throughout the region.

The breweries in Kiev and the southern city of Zaporizhia have been closed in response to the Russian invasion, and the third brewery in the western city of Lviv is still in operation at the time of writing.

Carlsberg is Ukraine’s second largest brewing company, following the very popular Ukrainian brewery Obolon, which became the first privatized company in Ukraine in 1991.

Overall, Carlsberg has a 31% share of the Ukrainian beer market, much of it through its subsidiary Baltika Brewery, which owns an 85% share of Baltika Brewery.

The recent Russian invasion has disrupted industry in most of Ukraine, which has suffered significant closures early in the war.

Ukraine has closed airspace to international flights and many flights in Kiev are stuck trying to evacuate international staff. Coca-Cola has also shut down bottling facilities in Eastern European countries, and global logistics companies UPS and FedEx have shut down domestic and international operations.

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Ukrainian military personnel are preparing to repel an attack in the Lugansk region of Ukraine on February 24, 2022. (Anatolii Stepanov / AFP via Getty Images)

The Ukrainian economy has been lagging behind industrial activity since its independence in 1991, and analysts have come to call the country a “minor” or a “sick person in Europe.” This is in stark contrast to some other former Soviet countries in Eastern Europe, especially Latvia, Lithuania and Estonia in the Baltic states. All of these states have experienced significant economic growth since the collapse of the Soviet Union.

Historically an agricultural nation, Ukraine has little history of a mass-industrial economy, and progress in industrial development has curbed the development of the Soviet Socialist Republic of Ukraine and killed millions of people in Holodomor. Delayed by the Soviet communist ideology that led to mass hunger. Ukrainian.

Many observers wanted Ukraine’s independence to lead to rapid economic growth and prosperity, but the country is suffering from rampant corruption, discouraging industry and international investment in relatively young countries. ..

News of the recent industrial outage in the light of Russia’s aggression seems to have hit the Ukrainian economy yet another in a long series of hardships that have undermined the country’s progress over the centuries.

Nicholas Dringer

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Nicholas Dolinger is a business reporter for The Epoch Times and author of the “The Beautiful Toilet” podcast.

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