Putin has removed Danone’s Russian subsidiary from a list of assets placed under temporary state management, as reports arise of impending sale.
The latest presidential order might pave the way for the potential sale of the FMCG’s Russian business to a company favored by the Kremlin, Bloomberg reported.
The new decree comes after the Financial Times reported last month that the food and drinks manufacturer, whose portfolio includes brands such as Volvic, Activia, Actimel and Alpro, , was considering selling its Russian business to dairy company Vamin Tatarstan, owned by investor Mintimer Mingazov.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
The acquisition is thought to be £150.7m (₽17.7 billion roubles), which experts believe would be a heavily discounted price.
Last July, Russia seized the Russian subsidiaries of both Danone and fellow FMCG Carlsberg, after signing a decree allowing for temporary state control over firms from “unfriendly states”.
However, only last month the boss of Cadbury owner Mondelez defended the company’s decision to continue doing business in Russia, despite criticism from consumers and campaigners.
Chief executive Dirk Van de Put said: “I wonder what happened with the companies that were sold, who got them and what are they doing with the cash that those companies generate? They all went to friends of Putin.”
He added: “And you can bet that the cash they generate [that] goes to the war is much bigger than the taxes we would pay.”
