Finnish dairy Valio sells Russian unit after nationalisation threat
Valio gave no financial value for the transaction
27 April 2022
1 minute read
Finnish dairy producer Valio has sold its Russian business to GK Velkom, the company said in a statement on Tuesday, following an earlier threat by Russian authorities to nationalise its business there.
In March, Russia's ruling party, United Russia, threatened foreign firms that exit the country due to Russia's attack on Ukraine with nationalisation of their Russian assets, mentioning Valio and two other Finnish companies as examples, reported Reuters.
Valio said the transaction would take effect immediately but gave no financial value for it.
Valio's Russian operations employed 400 people and included a cheese factory in Ershovo.
"With the transaction, Valio's personnel in Russia will transfer to Velkom Group," it said.
As part of the deal, GK Velkom has acquired the rights to the Viola brand and the company's production site in the Moscow region, Valio said.
In 2020, Valio's net sales in Russia amounted to 87 million euros ($93 million) and accounted for approximately 5% of the group's global net sales of about 1.8 billion euros.
Valio, which exports products to some 60 countries around the world, said on March 7 that it was closing its business in Russia due to Russia's war in Ukraine.
Source: Reuters
