7 April 2022

2 minute read

Europe

French food group Danone said on Tuesday that "all options are on the table" regarding its business in Russia and that there was no decision at this stage to exit the country, reported Reuters. 

This was after a source close to the matter said Danone was looking at possible ways of withdrawing from Russia, as the West prepared new sanctions on Moscow after dead civilians were found lining the streets of a Ukrainian town seized from Russian invaders.

The source had added no decision had yet been taken.

"The position of Danone regarding its business in Russia has not changed. All options are on the table and the group is monitoring the situation in close cooperation with the French government," a group spokesperson said.

A source had said earlier that Danone was "reviewing a possible withdrawal from Russia," adding the company wanted to avoid losing assets or exposing local staff to trouble as well as avoid cutting the local population from food supply if it pulled out.

The company earned about 5% of its revenues in Russia in 2021 and less than 1% in Ukraine.

Last month Danone said it would continue local production in Russia of essential dairy and infant nutrition products, but had cut other ties with the country over its war in Ukraine. 

The company said at the time it had ended other imports and exports as well as all investments, including advertising and consumer promotions, in Russia, and that it would not take any cash, dividends or profits from its business there.

Source: Reuters