DANOY Danone (QX)

By Adria Calatayud and Mauro Orru

Danone said late Sunday that it investigating the situation surrounding its operations in Russia after authorities there decided to place Danone Russia under temporary external administration of a government agency.

On Sunday, Russian President Vladimir Putin signed a decree to take control of Danone's assets in the country and Copenhagen-based brewer Carlsberg's Baltika Breweries, effectively handing the stakes in their Russian businesses to the Federal Agency for State Property Management.

The Kremlin in April moved to seize the assets of Germany's Uniper and Finland's Fortum in the country under similar arrangements.

The French food company said the planned transfer of control of its essential dairy and plant-based business in Russia that was disclosed in October was progressing according to the expected schedule.

"Danone is preparing to take all necessary measures to protect its rights as shareholder of Danone Russia, and the continuity of the operations of the business in the interest of all stakeholders, in particular its employees," the company said.

The decision of the Russian authorities has no impact on the company's guidance for 2023, Danone said.

Write to Adria Calatayud at adria.calatayud@dowjones.com and to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

July 17, 2023 02:04 ET (06:04 GMT)

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