Danone plans to sell Russian enterprises to businessman associated with Kadyrov
The Russian share of the Danone company, which was seized by the country's government in 2023, is set to be sold to a Chechen businessman with close ties to the Kremlin.
Source: Financial Times with reference to its sources
Details: The French company Danone will sell Life & Nutrition to the Russian dairy company Vamin Tatarstan, which is owned by 29-year-old Mintimer Mingazov.
Mingazov was appointed to Life & Nutrition's board this summer, shortly after the Kremlin transferred control of the company to Yakub Zakriev, Kadyrov's 33-year-old nephew, in response to Western sanctions.
Airat Mukhamadeev, director of the Vamin Tatarstan, stated that it has agreed to pay RUB 17.7 billion (US$191.5 million) for control over the Russian part of Danone, with RUB 7.7 billion (US$83.2 million) going to service debt on operations in Russia and the remainder going to Danone's share of the company.
According to the Kremlin's policy on Western companies exiting the Russian market, the transaction price includes a 56% discount on the market value of assets.
Danone has also agreed to provide support until the end of July 2025 to ensure the "continuity" of its former Russian business, as Life & Nutrition continues to localise the production of certain ingredients, in order to maintain "the high quality of products to which Russian consumers are accustomed."
The agreement must be approved by the Russian Ministry of Agriculture before being voted on by a special government subcommittee tasked with approving Western companies' exit from the market.
People familiar with this process report that the sale of Danone assets to Vamin Tatarstan may not happen, the Financial Times indicates.
Background: In July 2023, Russian leader Vladimir Putin transferred foreigners' shares in Baltika and Danone's subsidiary companies to the Federal Property Management Agency; previously, the companies announced the sale of their assets in the Russian Federation.
Support UP or become our patron!
