Danone has planned to withdraw from most of its activities in Russia, but this decision still needs to be approved by the competent authorities.
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© YURI KADOBNOV / AFP
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PAlmost eight months after the start of the war in Ukraine, Danone decided to withdraw from most of its activities in Russia, like many European and American companies. The French agrifood giant announced on Friday October 14 that it planned to withdraw from its “dairy and plant-based products” unit in Russia, which constitutes the major part of its activity in the country, not retaining eventually as its infant nutrition branch. However, Danone specifies that this decision must still be ratified by the competent authorities.
“Danone today announces its decision to start the process of transferring control of its Essential Dairy and Plant-based (EDP) business to Russia,” said the group, one of the few multinationals to have remained in Russia since start of the war in Ukraine in February. The group has not announced who could eventually resume its Russian factories and activities, in this branch of dairy and plant products, or when exactly. Danone will, however, retain the activities of its “specialized nutrition” branch, which produces infant milk in particular (Blédina, Aptamil).
The operation could “result in a depreciation of up to 1 billion euros”
The French group, which spoke in July of “extremely tense operational conditions in Russia and Ukraine”, considers that this is the “best option to ensure the continuity” of this activity with its employees and its consumers.
Since January 2022, the EDP activity in Russia “has represented approximately 5% of Danone’s consolidated revenue”. 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 8,000 people, while suspending its investments in the country.