New Zealand dairy giant Fonterra has announced it will exit its businesses in Russia following the military invasion of Ukraine.
It comes after the company's decision to suspend shipments of product to Russia at the end of February.
CEO Miles Hurrell said “our first step following Russia’s invasion of Ukraine was to establish the safety of the team in Russia, and our priority through this process continues to be doing the right thing by our people.
Fonterra exports a small amount of product to Russia, mostly butter, equating to around one per cent of yearly exports. (Source: 1News)
“We then suspended shipment of product to Russia while we assessed the impact of economic sanctions and discussed our long-term plans with our customers and joint venture partner.
“Following careful consideration of the impact on our people and our long-term plans for the Russian market, we will now close our office in Moscow, re-deploying staff where possible, and withdraw from our joint venture Unifood."
Trade and Export Growth Minister Damien O’Connor said in a statement: "I support Fonterra in its move and welcome the solidarity of New Zealand businesses who oppose Russia’s invasion of Ukraine.
"It’s also an understandable commercial decision for the co-op.
"The Government too is continuing its response to the war by rolling out economic sanctions and providing humanitarian support."
Fonterra exports a small amount of product to Russia, mostly butter, equating to around one per cent of yearly exports.
“Given the current strong demand for New Zealand dairy, we are confident in our ability to re-allocate this product to other markets,” Hurrell said in a statement.
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