Following a complaint by Valio, Finland's largest dairy, a regional office of the Russian Federal Anti-Monopoly Service (FAS) conducted an investigation and determined that Nevskie Molokoprodukty and Finnish Milk Company had violated Russian competition law.
The Finnish flag, a blue Nordic cross on a white background, and the phrase 'The Freshness of the Finnish Morning' previously featured on packs of Tysyacha Ozer (Thousand Lakes) butter.
"To buyers, this created an idea the product was manufactured in Finland," said FAS in a translated statement. "Meanwhile, the production is in Russia."
FAS determined that Nevskie Molokoprodukty and Finnish Milk Company had "misled consumers as to the place of production of the food. And this is prohibited by the Law on Protection of Competition."
During the course of the FAS investigation, however, Nevskie Molokoprodukty and Finnish Milk Company made alterations to packs of Tysyacha Ozer butter, which now contain "no more false information."
“Due to the fact that the violation has been corrected voluntarily, the FAS decided not to issue an order," the translated statement continued.
Helsinki-based Valio was unavailable to comment on the conclusion of the FAS investigation.
Russian embargo
Valio has been unable to export its Valio FIN butter to Russia since August 2014, when Russian Prime Minister Dmitry Medvedev introduced a one-year ban on the import of agricultural items, including dairy products, from the European Union (EU), United States, Australia, Canada, and Norway.
Valio claimed to the the "hardest hit of all companies in Finland" by the ban.
In 2013, Valio exports to Russia, valued at €242m, accounted for almost 20% of the company's revenue.
Lactose-free milk and dairy products were later removed from the Russian import blacklist, an amendment Valio branded "extremely significant."
Celebrations were, however, short lived.
Within a week, trucks containing Valio lactose-free milk, yogurt, cottage cheese and sour cream were stopped at the Russian border.
Finnish Valio products, including Valio FIN butter and Valio Eila lactose-free products, are still "temporarily not available," according to the Valio Russia website.
Valio products made in Russia, including Valio Viola butter, are, however, still on sale in the country.