Danone ‘to sell off operations in Russia’

The Activia maker is said to be set to sell its business in the country to the Russian cheese and butter maker for Rbs17.7bn ($191m), according to a letter viewed by The Financial Times.

The owner of Vamin Tatarstan, Mintimer Mingazov, has agreed to pay Rbs10bn to Danone for its equity and Rbs7.7bn to go towards debt servicing.

The reports have emerged a day before the French giant, which was in the process of selling its operations in Russia, is due to release its 2023 annual results.

Danone’s Russian operations were seized by the Kremlin last July, with the stakes of the company being put under the “temporary management” of Rosimushchestvo, the national government property agency.

The Kremlin appointed Chechnya’s minister for agriculture, Yakub Zakriev, to manage Danone’s Russian branch.

When asked for comment on the latest sale by Just Food, Danone said: “As you remember, in July 2023, Danone Russia (EDP), now known as H&N, was placed under the temporary external administration of the Russian Federal Agency; while Danone remained the legal owner of the assets, the company lost the management control of the business and has accordingly fully deconsolidated its EDP Russia entities from July 2023.

“Since the announcement, our focus was to ensure the safety of our people while protecting Danone’s assets and rights. Given the uncertainty and volatility of the situation, we can’t comment further.”

Just Food