French agribusiness giant Danone announced on Friday that it plans to divest from its “dairy and plant-based products” unit in Russia, which makes up the bulk of its business in the country, eventually retaining only its infant nutrition branch.
“Danone today announced its decision to launch the process of transferring control of its Essential Dairy and Plant-based business (EDP) in Russia,” said the group, one of the few multinationals to have remained in Russia since the start of the war in Ukraine in February.
The group did not announce who could eventually resume its Russian factories and activities, in this branch of dairy and vegetable products, or when exactly.
The operation will be subject to the approval of the competent authorities, the group specified. < /p>
Danone, on the other hand, will retain the activities of its “specialized nutrition” branch, which produces in particular l infant formula (Blédina, Aptamil).
The French group, which spoke in July of “extremely tense operating conditions in Russia and Ukraine”, considers that this is the “best option to ensure continuity” of this activity with its employees and consumers.
Since January 2022, EDP activity in Russia “has represented around 5% of Danone's consolidated turnover”. The operation could “lead to a depreciation of up to 1 billion euros”, in its accounts, according to the group.
In March, Danone announced the maintenance of its activities in Russia, where it employs 8000 people, while suspending its investments in the country.
Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my email@example.com 1-800-268-7128