Danone has announced plans to transfer control of its dairy food business in Russia in a transaction that could result in a write-off of up to €1 billion.

Announced on Friday, Danone said the decision to offload its Russian Essential Dairy and Plant-based (EDP) operations was “the best option to ensure long-term local business continuity, for employees, consumers and partners”.

According to Danone, the business represented around 5% of the company’s net sales during the first nine months of 2022. 

Earlier this year, the dairy giant announced that it would restrict all investments in Russia. However, the company said it would continue to produce and distribute its dairy and infant nutrition products to meet the essential food needs of the local population.

According to Reuters, Danone is retaining its infant nutrition unit in the country following last week’s announcement.

The transaction to offload Danone’s EDP Russia business is subject to regulatory approvals.