Danone will cease operations at a yogurt processing plant in Ukraine due to the war but will continue operations in Russia.
Danone officials said they would stop production at one of its two factories in Ukraine and would suspend “investments” in Russia as a result of Russia’s invasion. However, it will continue to sell dairy products and baby food in Russia.
Ukraine and Russia combined account for about 6% of Danone’s total sales. Danone employs about 1,000 people in Ukraine and 6,000 in Russia, where it owns the Prostokvashino dairy brand.
"We have decided to suspend all investment projects in Russia but currently maintain our production and distribution of fresh dairy products and infant nutrition to still meet the essential food needs of the local population," the company said in a statement quoted by Reuters.
Shares of Danone stock fell 3% Monday after the announcement.
