About eight months after Russia seized control of its management, French multinational Danone announced that it has received the Russian regulatory approvals required for the disposal of its Essential Dairy and Plant-based (EDP) business in Russia to Vamin R LLC. The closing of this disposal is expected in the coming weeks.
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Danone initially launched the transfer process of its EDP business in Russia in October 2022, after stating that it was willing to relinquish control of its dairy food business in Russia. Russia had put in place the previous April a rule that allowed the Russian state to seize the assets of companies from any countries it deemed “unfriendly.”
In July 2023, Russian President Vladimir Putin signed an order placing the shares of Danone Russia, the country’s largest dairy company, under the control of Russia’s Federal Agency for State Property Management.
At that point, Danone deconsolidated EDP Russia from its accounts. The total loss recognized by Danone in its accounts amounts to €1.2 billion ($1.3 billion).
