Carlsberg has suspended production at one of its Baltika Breweries’ facilities in Russia.

Brewing has ceased at the Chelyabinsk brewery due to a drop in demand and Russia’s shrinking beer market, Reuters reported today. An emailed statement from Carlsberg to just-drinks said: “As has been reported in the media, Carlsberg can confirm that one of the Baltika breweries in Russia has temporarily ceased production. Production is expected to resume as required by market demand.”

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The brewery is one of Baltika’s 10 facilities in Russia, with an annual production capacity of 4.5m hectolitres, according to Baltika’s website. The site produces Tuborg under licence and national brands such as Baltika and Zatecky Gus.

Last month, Carlsberg’s CEO Jørgen Buhl Rasmussen admitted the company was considering closing an unspecified number of breweries in Russia.

Mairbek Sageev, Chelyabinsk brewery’s director, told Reuters: “This is connected with the end of the high summer season and the onset of autumn, when demand for the products is on the decline.” He also pointed to a “significant drop in the total beer market.” 

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The Danish brewer has suffered in Russia with first-half sales in Eastern Europe, including Ukraine, falling by 18% and volumes by 10%. Analysts believe the company has been hit by economic sanctions, which are affecting consumer spending in Russia. Carlsberg last month blamed an “uncertain macroenvironment, weak economic development and bad weather”. The company relies on Eastern Europe for around 36% of its group profits. 

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*This story was updated at 11.15 BST on 30 September after Carlsberg responded to initial reports.