The largest dairy company in the world, Lactalis, said on Friday that it will keep doing business in Russia to serve the local food market. This came after Reuters reported that Danone, a French dairy company, would give up control of its business in Russia.
“At this point, we’ve decided to stay in Russia,” a spokesman told Reuters. “We think we’re doing our job by feeding the civilians,” they said.
Because Moscow’s invasion of Ukraine has caused a political standoff, many multinational companies have sold their Russian assets. The news was similar to what Nissan said earlier this week, when it said it would sell some of its assets to the Russian government.
But some Western food companies, like Lactalis, have chosen to stay there because they provide staples.
Lactalis is a private company with four factories in Russia that process local milk. About 1,900 people work for Lactalis. Last year, the country made up about 1% of its 22 billion euros ($21.39 billion) in sales around the world.
The group has stopped making industrial investments and advertising in Russia and has separated its local business from the rest of its operations, a spokesperson said. The spokesperson also said that the group did not have any contracts with the Russian government.
Lactalis has also stayed in Ukraine, where it has three production sites and employs about 850 people.
The factories are on land that is controlled by the Ukrainians. They are close to the front lines in the east and south of the country.
Before the war, Lactalis’ business in Ukraine brought in about as much money as its business in Russia, the group said.
