Source: Danone to go through long transition period in Russia

MOSCOW, Oct 17 (PRIME) -- France’s Danone has said in a letter to its partners that the transfer of Russian assets to another entity will require a long time, and the company will continue working as usual throughout the period, an industry source told PRIME late on October 14.

Earlier in the day, Danone said that it planned to transfer the control of its dairy and plant-based business in Russia, and can write off up to 1 billion euros. The Agriculture Ministry said later that all Danone’s plants continued working as usual.

“The letter says that a transition period of this deal could take a while, and that the company planned to continue working as usual and making the same products throughout the period,” the source said.

Danone confirmed the plans to transfer control over its Russian assets to another entity, but provided no details in the letter, the source said.

Another source confirmed the fact that Danone had sent the letter, but refused to elaborate.

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