Photo: Maxim Shipenkov / EPA-EFE
The French supermarket chain Auchan is set to sell its business to local Russian buyers, French newspaper Le Figaro reported on Thursday.
According to the publication, Auchan decided to get rid of its business in Russia due to EU sanctions against Moscow, over two years after they were introduced.
“Unlike other, less cautious European distributors, Auchan strictly complies with the sanctions imposed on Russia,” a source familiar with the situation told Le Figaro, adding that Auchan had not invested in the Russian market since the sanctions were introduced and therefore did not make any profit on investments.
“This puts it at a great disadvantage compared to local distributors owned by Russian oligarchs,” the source continued.
Auchan’s management has already found two potential buyers for the business in Russia, with negotiations on the deal already in the final stages, according to Le Figaro. Auchan’s Russian subsidiary denied rumours in April that the company was planning to leave the Russian market.
An investigation published by Novaya Gazeta Europe in February found that at least 110 major foreign companies continued to operate in Russia despite its invasion of Ukraine, with many of them effectively taken hostage due to the large number of restrictions placed on them by the Russian government, meaning that they could not leave the country without suffering serious losses.
In March, a report by the news agency Reuters found that the corporate exodus from Russia since its invasion of Ukraine 2022 had cost foreign companies more than $107 billion (€99 billion) in writedowns and lost revenue.
However, a representative of Auchan Retail Russia told Russian business daily RBC that rumours about the company leaving Russia have been circulating for several years, and refused to “comment on market rumours” when asked about the reported plans to sell Auchan.
The Auchan company has been operating on the Russian market since 2002, and the chain has more than 200 hypermarkets and supermarkets in the country.