(Reuters) -Kellogg Co said on Thursday it has decided to divest its operations in Russia to local snacks and drinks maker Chernogolovka as the company joins a long list of Western brands pulling out of the country.
The Corn Flakes maker earlier this year suspended all imports of its products in Russia and pulled investments including advertising and promotions in the country, following Moscow’s invasion of Ukraine.
The Kellogg (NYSE:K) business in Russia currently represents less than 1% of the company’s total net sales, a company spokesperson said, adding that sustaining its operations there has now become untenable.
Founded in 1998, Chernogolovka makes snacks, energy drinks, and bottled water, and has been producing Cola Chernogolovka since May, following the suspension of sales in Russia by soda giants Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP).
Chernogolovka, which has also started supplying soft drinks to the Russian outlets of Burger King and KFC in April, said it has signed a binding agreement with Kellogg.
Kellogg, also known for its Pop-Tarts and Pringles snacks, joins a list of Western companies that have sold their Russian assets to comply with sanctions imposed on Moscow over the Ukraine conflict.
The sale is subject to a number of local government regulatory approvals, the company said.