The French company Danone decided to write off about €200 million after losing control over the Russian structure. This is stated in the company’s report for the first half of 2023.
“Danone will stop consolidating its EDP activities in Russia in July 2023, resulting in a cash impairment of approximately €200 million,” the company said in a statement.
In its document, Danone noted that it remains the legal owner of enterprises in the Russian Federation after the business came under the control of the Russian government.
In March 2022, Danone also announced in early March that it was suspending investment projects in Russia. Later, in October of the same year, the company’s press service announced the decision to transfer control over the dairy products business in the Russian Federation.
By decree of Russian President Vladimir Putin dated July 16, 2023, the shares of the Danone subsidiary were transferred to the Federal Property Management Agency for temporary management.
On July 18, Deputy Chairman of the Government of Chechnya and Minister of Agriculture of the Republic Yakub Zakriev became the head of JSC Danone Russia.