French food company Danone suspends investment projects in Russia, production to continue

Paris-based food company Danone said it is suspending all investment projects in Russia amid the war in Ukraine.

The company, however, said, it will maintain production and distribution of fresh dairy products and infant nutrition in order to meet the essential food needs of the local population.

"This war could last for a long time. If so, it will lead to increasing difficulties for the population affected to get hold of basic goods," it said in a statement on Sunday.

Danone said one of its two factories has been closed in Ukraine, adding the other one was closed but managed to resume operations.

The company said it made a donation of €500,000 ($543,844) to the Red Cross, which will be used to supply water, food and medicine.

In addition, Danone said it will match fund every euro donated by its employees for humanitarian efforts.

"We are also working with the Red Cross to explore how we can bring a variety of basic necessities to Ukraine. Our teams in neighboring countries are actively involved in collecting and distributing goods to refugees," it added.