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Danone Receives Regulatory Approval To Write Down Russia Assets

By Reuters
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Danone Receives Regulatory Approval To Write Down Russia Assets

French food group Danone has said that the regulatory approvals required for the disposal of its Essential Dairy and Plant-based business in Russia to Vamin R LLC have been obtained.

The total loss recognised by Danone in its accounts amounts to €1.2 billion, the company said.

The closing of this disposal is expected in the coming weeks, Danone added.

'As a reminder, Danone launched the transfer process of this business in October 2022,' Danone said in a statement.

'In July 2023, Danone deconsolidated EDP Russia from its accounts after losing the control of the management.'

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Ukraine Blacklist

Elsewhere, Ukraine has scrapped its 'sponsors of war' blacklist, the centrepiece of its campaign to pressure companies doing business in Russia, the agency in charge said on Friday after a backlash from countries from Austria to China.

The end of the blacklist, which has embarrassed around 50 major companies identified as operating in Russia and indirectly helping the Kremlin's war in Ukraine, represents a climbdown by Kyiv as it seeks to maintain fragile international support.

Critics say the name-and-shame campaign was brash and subjective, while backers say it laid bare how industry stayed loyal to Moscow.

It marked the end not only of the list but also saw swathes of information on a related website disappear from view.

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B4Ukraine, a coalition of civil society groups, said the demise of the list was disappointing, and that most governments had done little to pressure companies to cut ties to Russia.

Karin Doppelbauer, an Austrian lawmaker with the liberal Neos party, criticised the government in Vienna for exerting pressure over the blacklist.

"The government has to understand that any cosy relationship with Putin is over," she said.

While some companies changed course in their business dealings with Russia as a result of appearing on the list, the majority instead expressed indignation and sometimes used political pressure to get off the blacklist.

Additional reporting by ESM

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