Danone is divesting its Russian company, which has been controlled by the Russian government agency Rosimushestvo since July 2023. Vamin Tatarstan, a Russian corporation, is preparing to purchase Danone’s Russia division for 17.7 billion roubles (US$186 million). Danone will get 10 billion roubles (US$105 million) for its shares, with the remainder used to settle debt inside the Russian company. Danone took a significant write-down of around €700 million (US$757 million) on its Russian business after the seizure by Russian authorities. According to the Danone press office, Danone has retained legal ownership of the assets since the seizure, but the business has lost managerial control and will deconsolidate its EDP Russia subsidiaries beginning in July 2023. According to a source in the Russian dairy business, the government agency has been nominated as an intermediate stakeholder in Danone assets, thus the sale is still legally conceivable. There may be numerous choices for selling: fully to a specialist player like Vamin or in pieces. Moscow requires at least a 50% discount on all overseas agreements once the Russian government’s chosen advisors evaluate the firm. Danone has promised to offer assistance until the end of July next year to enable the continued operation of its former Russian company.
