Danone S.A. (ENXTPA:BN) is planning to sell its Russian business to a member of its Kremlin-installed management linked to the nephew of Chechen strongman Ramzan Kadyrov, seven months after Vladimir Putin ordered the seizure of the French company?s local operations. The dairy products group is looking to sell the rebranded Life & Nutrition to Vamin Tatarstan (OAO VAMIN Tatarstan), a Russian dairy company owned by 29-year-old Mintimer Mingazov, according to documents seen by the Financial Times and people familiar with the situation. Mingazov was appointed to Life & Nutrition?s board this summer shortly after the Kremlin handed control of the business to Yakub Zakriev, Kadyrov?s 33-year-old nephew, as Moscow retaliated against western sanctions imposed in response to its assault on Ukraine.

In a letter sent to Russian agriculture minister Dmitry Patrushev and seen by the FT, Ayrat Mukhamadeev, the director of a newly created company owned by Vamin Tatarstan, said it had agreed to pay RUB 17.7 billion ($191.5 million) to take control of Danone?s Russia business-RUB 7.7 billion of which will go towards servicing debt in the Russia operation with the rest paying for Danone?s equity in the company. Two people with knowledge of the matter confirmed that the French group was pursuing a sale to Vamin. Danone declined to comment.

The deal is subject to the approval of Russia?s Ministry of Agriculture before being voted on by a special government subcommittee in charge of approving exits by western companies. A green light remains uncertain, according to people with knowledge of the process-numerous western companies have had their applications rejected, or seen their deals fall apart because of disagreement within the Russian government. In the letter to the minister, Mukhamadeev said the transaction price represented a 56% discount to the business?s market value, according to an independent appraisal cited by the company.

He noted that in order to ensure the ?continuity? of its former Russian business, Danone had agreed to provide support until the end of July next year as Life & Nutrition continues to localise production of certain ingredients to preserve ?the high quality of products to which Russian consumers are accustomed?.