Fonterra Pours Money Into Russian Business
New Zealand’s Fonterra cooperative is taking a 49% stake in a St. Petersburg-based joint venture with Foodline, Russia’s primary distributor, the New Zealand Herald reports.
In December, the Russian media initially reported the news, but Fonterra was unwilling to confirm the rumors until recently. According to the New Zealand Herald, Fonterra was not willing to be interviewed about the deal, but did send the news organization a statement saying they have kept the New Zealand government abreast of the investment. This deal was announced just months after New Zealand’s leaders re-opened free trade with Russia.
“The investment is a matter of some sensitivity,” the Herald reports. “In late 2014 then-Prime Minister John Key said New Zealand stood with the European Union and others including the US and Australia who had imposed sanctions on Russia in the wake of the annexation of Crimea and conflict in Ukraine.”
According to the Herald, Fonterra is looking to Russia to counterbalance New Zealand dairy’s reliance on China. Read the full story here.