DMK has been granted permission to buy several dairy companies in the Voronezh Region, including the Bobrovsky cheese-making factory, as well as some dairy retail companies in Moscow and the Moscow Region.
The Russian companies and DMK have long been in talks, a source close to the deal told the Russian newspaper Vedomosti.
Russian dairy company RichArt Group was one of the Russia’s biggest importers of cheese, including from DMK, before sanctions were imposed, other sources said.
The Bobrovsky cheese-making plant produces and supplies mid range cheese to almost all of Russia’s retail chains.
In 2014, DMK Deutsches Milchkontor reported profit of €5.3 billion. The company produces dairy products, cheese, and ingredients for baby food.
DMK supplied cheese to Russia after the food embargo was introduced, but soon after reported a slump in demand.
Due to the food ban, many Western companies have been looking for ways to bypass the sanctions, including localization of their production in Russia. Among such companies are Lactalis Group, Arla, and Valio.