The Russian president issues a decree transferring management of French Danone food company to the Russian government

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Russian President Vladimir Putin issued a decree reversing a previous decree, transferring management of French food company Danone’s assets in Russia to the Russian government as part of a response to Western sanctions.

This decree ends the temporary administration over Danone’s assets in Russia, in light of reports indicating the French company’s intention to sell its assets in Russia.

Last month, the Financial Times reported that Danone intends to sell its operations in Russia to the Russian dairy company Vamin-Tatarstan.

Reports indicate that the deal is subject to the approval of the Russian Ministry of Agriculture and a Russian government committee responsible for approving the exit of Western companies from Russia.

In April last year, the Russian president signed a decree imposing temporary administration on a range of foreign assets in Russia, in response to the seizure of Russian property in Europe.

Based on another presidential decree issued in July 2023, temporary administration was imposed on the shares of the Russian company affiliated with the French Danone.

Danone’s activities in Russia include 13 factories employing about 7,200 people, and sales from Russian activities represent 5% of the French company’s annual global sales, which amount to about $27 billion.

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