One of the largest producers of dairy products in the world – the French company Danone – has decided to leave the Russian market and transfer control over the Russian divisions of the company to an unnamed owner. This is stated in the release of the company.
"Danone believes this is the best option to ensure the long-term and smooth operation of local business for its employees, consumers and partners," the company said in a statement.
In 2022, Russia accounted for about 5% of the net sales of the entire French company, and the loss that the company will incur as a result of leaving the Russian market is estimated at €1 billion. Now the government commission must approve the deal, the report says. For the company, the priority remains the fulfillment of all obligations to the employees of the company and its partners.
Danone is one of the oldest foreign companies on the Russian market. Its first office opened 30 years ago – in August 1992 on Tverskaya Street in Moscow. For decades of work in the country, the company has invested several billion dollars in the development of production capacities, the company managed about 25 enterprises, and the total number of employees of the company is about 14 thousand people. Nothing is yet known about the new owner of Danone's production facilities.
After the start of the war in Ukraine, foreign business began to massively leave the Russian market. Among companies with a long history of work in Russia, Danone was one of the last to hesitate to take this step due to the social importance of business in providing citizens with essential goods. Back in April, the company rejected the possibility of leaving the Russian market, although in March it froze all investments in business development.