Uncertainty due to the ongoing crisis in Ukraine and financial issues in Russia have led to Danish brewery giant Carlsberg downgrading its expectations for 2014.

Instead of the initially predicted high single-digit percent organic growth, Carlsberg now expects low to middle single-digit growth for 2014. The same goes for its profit margins.

The company’s beer assets in the Russian market fell by 6-7 percent during the first half of 2014, and that trend is expected to continue.

“The market was impacted by a slower economic growth in Russia that impacted overall consumer spending negatively,” Jørgen Buhl Rasmussen said in a Carlsberg press release.

“The Russian market has become increasingly challenging, and with the current geopolitical tensions, we do not expect market conditions to ease over the remainder of the year.”

READ MORE: Carlsberg hanging tight in Russia

Huge market
Analysts had expected Carlsberg would suffer because of the political and financial situation surrounding the conflict in Ukraine, but hadn’t expected Carlsberg to have to downgrade.

Russia is Carlsberg’s largest single market and makes up the majority of the company’s business in eastern Europe. The Russian division had a turnover of almost five billion kroner in the second quarter, while operating profits were 1.5 billion kroner.