The French company Danone announced its decision to begin the process of transferring effective control over the business of producing basic dairy and plant products in Russia.
This was reported by the press service of the company.
The company believes it is “the best option to ensure long-term local business continuity for its employees, customers and partners.”
For the first 9 months of 2022, this line of the company’s business in Russia accounted for about 5% of Danone’s net sales. The transfer of control (which means the transfer of a stake in this business) could lead to a write-off of up to 1 billion euros, the company says.
Following the closing of the deal, which will be subject to regulatory approval, Danone’s Russian dairy and plant products business will be deconsolidated.
According to AFP, in this way Danone in Russia will only have a line for the production of infant formula and other baby food products.
The group remained among the few international companies that, for more than 8 months of a full-scale war of the Russian Federation against Ukraine, have not left the market of the aggressor state. It employs 8 thousand employees in the country.