The parent company of French supermarket chain Auchan is in the final stages of selling its Russian business, with two unnamed entities vying for the acquisition, as per reports from French publications La Lettre and Le Figaro.
The identities of the potential buyers remain undisclosed. An unnamed source cited by Le Figaro indicated that the company made this decision because “operating conditions in Russia have deteriorated.” The source also claimed that Auchan has “always strictly adhered to Western sanctions.”
Auchan’s subsidiary in Russia told the business outlet RBC that rumors of the sale of its Russian operations have been circulating for some time, and that the company remains committed to its public strategy. Auchan did not refute rumors about the reported sale.
In February 2023, The Insider published an investigation uncovering how, after the start of Moscow's full-scale invasion of Ukraine, Auchan's Russian branch had supplied goods to Russian military forces in occupied areas of Ukrainian, presenting the deliveries as “humanitarian aid.” A second investigation also found that the company assisted local Russian military draft offices in mobilizing its own employees into the armed forces — and that Auchan Russia’s senior management was fully aware of these actions.
Auchan was also notably praised by former Fox News anchor Tucker Carlson during his trip to Moscow to interview Vladimir Putin earlier this year.
While scores of major companies, particularly those from Europe and the United States, have suspended operations in Russia, reduced their presence, or completely exited the market, a handful have continued working in the country. One of these firms is the Coca-Cola Hellenic Bottling Company (HBC), which changed the name of its Russian subsidiary (“Coca-Cola HBC Eurasia LLC”) to “Multon Partners” — and in 2023 quadrupled its profits from the sale of “Dobry Cola” (lit. “Kind Cola”), a “homegrown” replacement for its American counterpart.
Russia has gradually imposed stricter conditions on foreign companies seeking to exit the market, requiring government approval, a 60% discount on any sale of foreign assets, and “voluntary contributions” to the federal budget of at least 35% of the sale price. Washington has dubbed the latter an “exit tax.”
Factors that have delayed the departure of multiple companies also include the complex legal environment, or the belief that exiting would hurt their business or local employees. Others have transferred operations to local partners or rebranded — like the clothing retailers Bershka and Zara, and the Finnish paint company Tikkurila — in order to continue functioning indirectly.