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The French company was allowed to sell its business in Russia

Danone’s losses from the deal amounted to €1.2 billion: the French company was allowed to sell its business in Russia

1:19

03/24/2024 20:56

The French company Danone has completed the process of obtaining permission from Russian regulators to sell its Russian business to Vamin R LLC.

The company’s losses from this transaction are estimated at €1.2 billion. The process of transferring assets began in October 2022, and in July 2023 Danone deconsolidated its activities in Russia, losing control over business management.

Danone planned to sell its Russian business for 17.7 billion rubles to Vamin Tatarstan. It was assumed that part of the funds would be used to service the debt of the Russian enterprise. This process began back in October 2022, when Danone announced its intention to transfer operational control of its fresh dairy and plant-based products business in Russia, TASS reported.

However, in July 2023, the President of the Russian Federation Vladimir Putin published a decree on the temporary transfer of the share of foreign owners in the Russian structure of Danone under the management of the Federal Property Management Agency. As a result of this, the Minister of Agriculture of Chechnya became the General Director of Danone Russia Yakub Zakriev.

Author Oleg Loginov

Oleg Loginov – student at the National Research University Higher School of Economics, freelance correspondent for Pravda.Ru

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