DANONE MAINTAINS ITS POSITION IN RUSSIA, CONTINUES TO PRODUCE ESSENTIAL GOODS
PARIS (Reuters) – Danone said on Wednesday the group would continue local production in Russia of essential dairy and infant nutrition products, but cut other ties with the country due to the war in Ukraine.
The French agribusiness group said it had halted further imports and exports to Russia as well as all of its investments, including consumer advertising and promotions, and that it would not receive cash, dividends or profits from its activities in the country.
Rival firm Nestlé said on Wednesday it would stop selling many of its non-essential products in Russia, including its KitKat and Nesquik brands, as Western companies come under pressure from governments to withdraw from Russia following its invasion of Ukraine.
Danone said the group had condemned the war – called a “special military operation” by Russia – from its start and in no uncertain terms.
The group also clarified that supporting the Russian people and their employees does not mean that it supports Moscow’s actions, and that its first priority will always be the safety of its Ukrainian employees.
“We also have a duty of care towards our 8,000 colleagues in Russia, towards Russian citizens, ordinary people, who rely on us for infant nutrition, medical nutrition, dairy products – essential foods,” Danone said.
The company said it did not plan to make profits in Russia or pay taxes for the foreseeable future, and added that if it made any profits during the war, it would donate them to humanitarian organisations.
Danone said it made about 5% of its 2021 revenue in Russia and less than 1% in Ukraine, where the company has nearly 1,000 employees.
Ukrainian President Volodimir Zelensky told French lawmakers on Wednesday that French companies, including retailer Auchan, should exit the Russian market.
Auchan, which employs 30,000 people in Russia, declined to comment.
(Report Geert De Clercq and Tassilo Hummel; French version Elena Vardon, edited by Jean-Michel Bélot)