“Auchan leaves Russian market after 2.5 years of full-scale war in Ukraine – media
25 October 2024 05:13
The French supermarket chain Auchan has put its subsidiary in Russia up for sale after 2.5 years of the great war in Ukraine. This is reported by "Komersant Ukrainian" with reference to Le Figaro.
According to the newspaper, Auchan has received about a dozen offers for its network of 230 stores in Russia. But so far, the company has not backed down from its position.
Auchan has now selected two potential buyers and entered the final phase of negotiations.
In March 2022, Auchan CEO Yves Claude said that the company would not leave the Russian market, despite accusations of financing the Russian Federation, because it wants to keep its employees and “ensure its core mission of feeding the people of both Ukraine and Russia.”
Russia accounts for 10% of Auchan’s global sales. Claude stated that if the company left Russia, 30,000 people would lose their jobs, including 40% of employees and shareholders.
However, over the past 2.5 years, the situation for the company has deteriorated: it is in a “very unfavourable situation compared to local distributors owned by Russian oligarchs”.
The source also notes that the French chain now has to coordinate its exit from the market with the Russian authorities in order to avoid the fate of other foreign companies such as Danone or Carlsberg: their assets were effectively nationalised by Russia.
Instead, the Russian propaganda state news agency TASS reported, citing Auchan’s press service, that the chain continues to operate in the Russian market. It also allegedly noted that the company did not comment on the reports of the sale of its subsidiary.
