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Groupe Danone and EBRD to strengthen Russia's fresh dairy sector
The European Bank for Reconstruction and Development (EBRD) is investing in the development of the Russian dairy industry through the $21 million purchase of a minority stake in Danone Industria OOO, the second-largest dairy company in Russia.
The transaction, one of the EBRD's largest equity investments in Russia to date, will help meet the growing demand for quality fresh dairy products in Russia. It should also encourage the restructuring of the Russian agricultural sector by providing stable demand, financing and know-how transfer to the farmers that supply Danone Industria.
The plant, built by Danone using state-of-the-art technology, started operations a year ago. Under a $100 million multi-project facility signed in March 1995, the EBRD and Danone have already jointly invested in four companies in Russia, Bulgaria, Romania and Poland.
The EBRD has now signed 137 investments in the agribusiness sector totalling more than €2.3 billion.
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