French multinational Danone said Friday it planned to transfer control of its dairy and plant-based business in Russia, retaining only its infant nutrition branch. The company was one of the few multinationals to have remained in Russia after the Ukraine war broke out in February.
Food company Danone said the move to transfer effective control of the dairy business to Russian control could cost the multinational one billion euros.
Russia has accounted for 5 percent of Danone's sales so far this year.
"Danone considers that this is the best option to ensure long-term local business continuity, for its employees, consumers and partners," the group said in a statement.
The transaction will be subject to the approval of Russian authorities, the group added.
Danone will however retain control of its "specialised nutrition" arm, which includes infant milk.
In March, the French group said it would continue its business in Russia, where it employs 8,000 people. At the same time, many international companies suspended operations in the wake of Moscow's invasion of Ukraine.
Multinational exodus from Russia
Starbucks and McDonald's were among American corporations to announce their exit.
McDonald's - which employed 62,000 workers in Russia - was bought by Russian businessman Alexander Govor and renamed "Vkusno i tochka" ("Delicious. Full Stop").
The Russian operations of Starbucks were also bought and reopened with a new name and logo.
Denmark's Lego, the world's largest toymaker, said in July that it would "indefinitely cease commercial operations" in Russia, ending its partnership with the retail group operating 81 stores on the brand's behalf.
French automaker Renault left the country in May, handing over its assets to the Russian government.
Other firms to wind down their Russian business include clothing brands Nike, Adidas and H&M, Swedish furniture giant Ikea, and US tech giant Cisco.
(With wires)
