Two Czech Breweries Stop All Exports to Russia

The two largest breweries in the Czech Republic, Budějovický Budvar and Plzeňský Prazdroj, have stopped accepting applications to supply their products to Russia.

“In the current crisis and extremely uncertain situation, we have suspended all production and supplies intended for the Russian market. We consider commercial issues as secondary. First of all, we need to think about providing accommodation to Ukrainian refugees,” said the representative of the state company Budějovický Budvar Barbora Blahova.

“We have decided not to accept orders for our products from Russia, which was one of the export markets for Pilsner Urquell and Kozel brands. This also applies to Belarus. We will focus on humanitarian aid to the people of Ukraine”, said the spokesman of Plzeňský Prazdroj Zdeněk Kovarž.

Both companies did not specify what volume of production they used to deliver to Russia.

According to the Czech Statistical Office, recently the Russian market accounted for about 10% of all Czech exports.

Last year, various breweries from the Czech Republic delivered 513 thousand hectoliters of beer to Russia.

Beer Prices Could Rise

The price of beer could rise significantly because of Russia’s invasion of Ukraine.

Reports point to how the potential increase in the cost of beer would be owed to the geographical location of the cultivation of barley. The grain is a key ingredient of beer-making and is heavily produced in Ukraine.

Due to the high amount of barely grain grown in the region, Ukraine is often referred to as the “breadbasket of Europe.”

Ukraine accounts for about 20% of beer’s usage of barley and is one of the top five global producers of barley.