Danone has been granted the regulatory approvals needed for the disposal of its Russian division, a loss that will cost the FMCG £1bn (€1.2bn).
The food manufacturer said the transfer of its Russian essential dairy and plant-based business to Vamin R LLC should be completed in the coming weeks.
It said the process of transferring its accounts was prompted after “losing control of the management”.
The FMCG titan said: “As a reminder, Danone launched the transfer process of this business in October 2022. In July 2023, Danone deconsolidated EDP Russia from its accounts after losing the control of the management. The total loss recognized by Danone in its accounts amounts to €1.2bn.”
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Danone’s regulatory approval follows months of speculation over the fate of its Russian subsidiary.
Earlier this month, Putin removed Danone’s Russian business from a list of assets placed under temporary state management, after originally seizing last July alongside fellow FMCG Carlsberg.
Last month, the boss of Cadbury owner Mondelez defended the company’s decision to continue doing business in Russia, despite criticism from 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.”
