The Russian subsidiary so far accounts for 5% of Danone’s net sales in 2022 (AFP)
announced French agri-food company “Danone”Today, Friday, it intends to transfer control of its core dairy and plant business from Russia, keeping only its infant nutrition subsidiary.
“Danone” which is one of multinational companies The few who have remained in Russia since the outbreak of the war in Ukraine said the shift to “transfer of de facto control” of the dairy sector could wipe out up to € 1 billion ($ 980 million).
The arm operating in Russia so far accounts for 5% of Danone’s net sales in 2022.
“Danone believes this is the best option to ensure the long-term viability of the local business for its employees, consumers and partners,” the group said in a statement, adding that the deal would be subject to approval of the authority.
However, Danone will retain the activities of its “special nutrition” arm, which includes infant formula. “Danone’s priority remains to act responsibly and respectfully towards its employees, consumers and local partners throughout the process,” the statement said.
In March, the French group said it would continue to operate in Russia, where it employs 8,000 people, as several international companies suspended operations following Moscow’s invasion of Ukraine.
But Danone in July spoke of “extremely tense” operating conditions in Russia and Ukraine.
Mass immigration of multinationals from Russia
Danone’s announcement comes in the context of a wave of withdrawal of a large number of large Western companies from Russia in a mass exodus since Moscow invaded its pro-Western neighbor on February 24.
Starbucks and McDonald’s were among the US companies that announced their exit from Russia.
And “McDonald’s”, which employed 62,000 workers in Russia, was bought by Russian businessman Alexander Govor and called “Vkusno i tochka”, which in English means “Delicious Full Stop”.
Starbucks’ Russian operations were also purchased and reopened with a new name and logo.
Denmark’s Lego, the world’s largest toy manufacturer, said in July that it would “halt commercial operations indefinitely” in Russia, ending its partnership with the retail group that operates 81 stores on behalf of the company. brand name.
French carmaker Renault left the country in May, handing over its operations in the country to the Russian government.
Other companies that will close in Russia include clothing brands Nike, Adidas and H&M, Swedish furniture giant Ikea, and US tech giant Cisco.
(AFP, The New Arab)
