DMK will get right to monitor business operations of several Russian manufacturers and suppliers of cheese.
The corporation aims to acquire the Bobrovsky Cheese Factory, ‘Cheeseart’ and ‘Flamanfrakht’ milk processing plants and cheese production facilities.
The parties reportedly started negotiating long before the embargo imposed by Russia’s authorities on European producers. However, no agreement has been reached yet, according to the CEO of Bobrovsky.
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“We are currently at the stage of negotiations, which might last a long time,” he said.
With turnover of €5.3 billion, DMK owns 26 factories in Europe, processing nearly 7 million tons of milk annually. The corporation offers basic milk products as well as cheese and dairy ingredients for baby nutrition, ice cream and health food.
Amid the embargo, many European companies are currently striving to localize their production capacities in Russia in order not to lose one of their biggest markets.
READ MORE: Parmesan cheese returning to Russian market
Trade relations between Russia and the EU have deteriorated since 2014, after Brussels imposed several rounds of sanctions over the Ukrainian conflict. In response, Moscow introduced a food embargo that includes ban on European meat, poultry and fish, dairy, fruit and vegetables.
Article source: https://www.rt.com/business/342902-german-producer-cheese-russia/?utm_source=rss&utm_medium=rss&utm_campaign=RSS
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