Putin removes Danone's Russian unit from temporary state management

The deal marks the latest Western asset transfer
calendar icon 14 March 2024
clock icon 1 minute read

Russian President Vladimir Putin signed a decree on Wednesday to remove Danone's Russian business from a list of assets placed under temporary Russian state management, reported Reuters

The Financial Times reported in February that a Russian businessman who flaunts his pro-war credentials on Instagram was planning to take over the Russian assets of the French dairy products company for 17.7 billion roubles ($191.52 million), months after Moscow seized temporary control.

Citing a letter sent to Agriculture Minister Dmitry Patrushev, the FT in February said the French dairy products group was planning to sell its Russian operations to a member of the Kremlin-installed management team, led by Yakub Zakriev, a nephew of Chechen leader Ramzan Kadyrov.

Danone in February had declined to comment on the FT report.

The deal would mark the latest Western asset transfer into Kremlin-friendly hands at a heavily discounted price, after scores of foreign companies sold or abandoned their businesses in Russia following Moscow's February 2022 invasion of Ukraine.

The Kremlin placed Danone's Russian assets under temporary management in July 2023 in retaliation against sanctions on Russian companies abroad.

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