Danone does not yet know what is legally feasible, a source said. — Reuters
LONDON: French dairy group Danone is reviewing its legal options after the Russian state took control of its subsidiary in the country, a source close to the matter tells Reuters.
The source said Danone would write to the Kremlin and was in contact with French authorities, including President Emmanuel Macron’s office.
The letter will ask for explanations, but Danone does not yet know what is legally feasible, the source added, declining to be named because the matter is confidential.
According to a decree signed by President Vladimir Putin on Sunday, foreign-owned stakes in Danone Russia, along with beer company Carlsberg’s stake in a local brewer were put under the “temporary management” of government property agency Rosimushchestvo.
Moscow’s action highlights the vulnerability of other consumer products companies that still have operations in Russia, some of which have announced plans to leave. Dove soap maker Unilever and Swiss food giant Nestle remain in Russia, as well as British American Tobacco
, which is trying to sell its unit. — Reuters
