Carlsberg has become the latest company to be affected by ongoing tensions between Russia and Ukraine.
The Danish brewer reported a drop in sales in both countries. Russian beer volumes dropped by between six and seven per cent in the second quarter as Carlsberg cited "uncertain macroenvironment" and "weak economic development as the route of the cause. Ukraine saw beer consumption drop by ten per cent as ongoing tensions in Eastern Europe continue to impact across the world.
Carlsberg expects that its declining performance in the region will have a negative effect on its yearly profits. Even its Baltika beer brand, which has the largest market share of Russian beer, saw a decline of 1.2 per cent to take its overall stake to 37.4 per cent. This was attributed to Carlsberg's decision to introduce smaller pack sizes.
Jorgen Buhl Rasmussen, Carlsberg chief executive, said: "In Eastern Europe, our teams are doing an excellent job mitigating the impact of the current market challenges.
"Unfortunately, we believe the Eastern European beer markets will be impacted further as consumers are facing increased challenges and this will impact the group's profits negatively this year."
Despite concerns about its Eastern European operations, Carlsberg posted much better results elsewhere. The company stated that its international premium portfolio delivered well with brands such as Tuborg, Somersby and Grimbergen all showing gains over the course of the quarter.
Russia recently responded to new Western sanctions by announcing a full embargo on food and drink imports on countries which had imposed these restrictions. The move has placed a lot of pressure on companies in the UK which trade with Russia.
The fishing sector is one which could bear the brunt of the changes with Russian traditionally spending around £17 million on frozen fish, according to figures from the National Farmer Union.