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Danone plans to sell its Russian business for $191.5 mln

According to the report, Russian dairy manufacturer Vamin Tatarstan will acquire Life & Nutrition, a Danone subsidiary in Russia

LONDON, February 21. /TASS/. Danone, a French dairy producer whose Russian assets have been placed under temporary control by the Federal Property control Agency, intends to sell its operations in the country to Vamin Tatarstan for 17.7 bln rubles ($191.5 mln), according to the Financial Times.

According to the report, Russian dairy manufacturer Vamin Tatarstan will acquire Life & Nutrition, a Danone subsidiary in Russia. According to a letter written to Russian Minister of Agriculture Dmitry Patrushev by the Vamin Tatarstan subsidiary's management, the company is willing to pay 17.7 bln rubles ($191.5 bln) for control of Danone's assets in Russia, the newspaper said, "7.7 bln rubles of which will go towards servicing debt in the Russia operation with the rest paying for Danone’s equity in the company."

Danone stated in October 2022 it would transfer operational duties over its fresh dairy and plant-based products business in Russia. However, on July 16, Russian President Vladimir Putin issued a decree on transferring the stake of foreign owners in the Russian structure of the French dairy product producer to the temporary control of the Federal Property control Agency. Yakub Zakriev, Chechnya's Minister of Agriculture, was appointed General Director of Danone Russia in July 2023.

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