French-based food conglomerate Danone says it will transfer control of its essential dairy and plant-based business in Russia, retaining only its infant-nutrition branch.
Danone is one of the few multinationals to have remained in Russia since the Ukraine war began.
The company said in a statement on October 14 that it had decided to look for a buyer in a move that could lead to a write-off of up to 1 billion euros ($980 million).
The Russian business arm of Danone, which includes the well-known dairy brand Prostokvashino, recently contributed 5 percent to the group's turnover. However, it had grown more slowly than the company and was also less profitable.
"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 the statement.
Danone will however retain the activities of its "specialized nutrition" arm, which includes infant milk.
"Danone's priority remains to act responsibly and respectfully to its local employees, consumers, and partners throughout the process," the statement said.
Danone employs 8,000 people in Russia.
French automaker Renault left the country in May, handing over its assets in the country to the Russian government.
Many Western companies have left Russia since Moscow invaded Ukraine on February 24.
Starbucks and McDonald's were among American corporations to announce their exit.
