{"id":7070,"date":"2024-10-25T14:01:52","date_gmt":"2024-10-25T12:01:52","guid":{"rendered":"https:\/\/www.standwithukraineeurope.com\/?p=7070"},"modified":"2024-12-10T11:32:03","modified_gmt":"2024-12-10T11:32:03","slug":"auchan-mulliez-in-russia-a-late-withdrawal-under-pressure-from-the-kremlin","status":"publish","type":"post","link":"https:\/\/www.standwithukraineeurope.com\/en\/auchan-mulliez-in-russia-a-late-withdrawal-under-pressure-from-the-kremlin\/","title":{"rendered":"Auchan in Russia: a late withdrawal under pressure from the Kremlin"},"content":{"rendered":"

According to<\/span> revelations by the media outlet ‘La Lettre<\/span><\/a> ‘ published on October 24, 2024, the <\/span>Mulliez Group, owner of Auchan<\/b>, is in advanced negotiations to <\/span>sell its 230 stores in Russia.<\/b> Gazprombank<\/b>, the bank of Russian gas giant Gazprom, with close ties to the Kremlin, is said to be the local buyer. This potential takeover is by no means a coincidental move: Auchan merely wishes to <\/span>escape the sanctions and \u201cexit tax<\/b> \u201d imposed on Western companies intending to leave the country.<\/span><\/p>\n

A forced exit<\/b><\/h3>\n

Auchan is not leaving Russia out of conscience, but under pressure from the Kremlin, which imposes drastic conditions on the withdrawal of foreign companies. <\/span>The Mulliez group’s second-largest market after France<\/b>, Russia has long been a priority for Auchan, which <\/span>hesitated between ethics and greed<\/b> before thinking of closing up store. An \u201cexit tax\u201d, <\/span>initially set at 10% but which could rise to as much as 40%,<\/b> now encourages foreign multinationals to sell their assets to entities close to the Kremlin.<\/span><\/p>\n

Gazprombank: a buyer that does the Kremlin’s business<\/i><\/b><\/h3>\n

A subsidiary of Gazprom, Gazprombank is under limited international sanctions, but nevertheless remains a strategic player for the Russian government. In September 2023, it had already <\/span><\/i>bought shopping centers from the Ikea group<\/i><\/b> in Russia, where some of the Auchan stores are located. Meanwhile, multinationals such as<\/span><\/i> Danone and Carlsberg<\/span><\/i><\/a>, wishing to leave the Russian market and find independent buyers, <\/span><\/i>had their assets confiscated when the Russian government rejected their deals.<\/i><\/b> Auchan is therefore afraid of suffering the same fate as these foreign brands.<\/i><\/b><\/p>\n

Auchan, controversial supporter of the Russian regime<\/i><\/b><\/h3>\n

Had this imminent departure not been dictated by the fear of seeing their assets confiscated in turn, Auchan would probably not have considered leaving Russia. Right from the start of the invasion of Ukraine, the French company had <\/span><\/i>shown its indirect support for the Russian regime<\/i><\/b> by remaining operational in the country, unlike many multinationals which had announced their immediate withdrawal. In March 2022, Auchan declared that it wanted to <\/span><\/i>\u201cmeet the essential food needs of the civilian population\u201d<\/i><\/b> and saw <\/span><\/i>\u201cno reason to condemn [its] Russian teams from a war they did not choose\u201d<\/i><\/b>. However, in February 2023, an<\/span><\/i> investigation by Le Monde<\/span><\/i><\/a> revealed that Auchan had allegedly <\/span><\/i>supplied goods free of charge to the Russian army<\/i><\/b>, in the temporarily occupied territories of Ukraine, under the pretext of humanitarian aid. Another investigation also revealed that Auchan actively helped its local branches to mobilize its own employees in the Russian armed forces with the consent of management. <\/span><\/i>Stand With Ukraine, alongside the B4Ukraine coalition, then challenged the company, which merely denied the accusations and repeated its explanations<\/i><\/b> in<\/span><\/i> an official letter<\/span><\/i><\/a>.<\/span><\/i><\/p>\n

Mulliez Group: an opaque withdrawal strategy<\/i><\/b><\/h3>\n

The Mulliez Group, which also includes Leroy Merlin and Decathlon<\/i><\/b>, has tried to temper negative reactions by promising a <\/span><\/i>gradual withdrawal<\/i><\/b>. So far, however, this withdrawal is more than relative. In February 2024, an<\/span><\/i> investigation by L’Express into Leroy Merlin<\/span><\/i><\/a> highlighted \u201cfalse start\u201d practices involving <\/span><\/i>opaque<\/i><\/b> financial arrangements<\/i><\/b> and <\/span><\/i>contracts<\/i><\/b> enabling the retailer to remain indirectly active in Russia. In parallel, a<\/span><\/i>\u00a0Disclose investigation into Decathlon<\/span><\/i><\/a> published in December 2023 revealed similar practices, including the use of<\/span><\/i> shell companies<\/i><\/b>, <\/span><\/i>hidden contracts<\/i><\/b> and a <\/span><\/i>supply chain via third countries that means that Decathlon products can in fact always be found in Russian stores, <\/i><\/b>despite being sold to the local Desport chain.<\/span><\/i><\/p>\n

A call to sanction and boycott the Mulliez Group<\/i><\/b><\/h3>\n

Stand With Ukraine, a member of the<\/span><\/i> B4Ukraine<\/span><\/i><\/a> coalition, is <\/span><\/i>actively campaigning for Western companies, particularly French and European, to stop funding<\/i><\/b>, even indirectly,<\/span><\/i> the Russian regime and the war in Ukraine<\/i><\/b>. This coalition for transparency calls for <\/span><\/i>sanctions and a boycott of companies<\/i><\/b> like Auchan, which continue to operate in Russia and thus <\/span><\/i>support the economy of a regime guilty of war crimes<\/i><\/b>.<\/span><\/i><\/p>\n

Cover image: Auchan logo on a shopping mall in Moscow, March 2022. Natalia Kolesnikova\/AFP<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

According to revelations by the media outlet ‘La Lettre ‘ published on October 24, 2024, the Mulliez Group, owner of Auchan, is in advanced negotiations to sell its 230 stores […]<\/p>\n","protected":false},"author":5,"featured_media":4041,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-7070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-our-actions-en"],"acf":[],"yoast_head":"\nAuchan in Russia: a late withdrawal under pressure from the Kremlin - Stand with Ukraine<\/title>\n<meta name=\"description\" content=\"The Mulliez group, owner of Auchan, is reportedly in advanced negotiations to sell its 230 stores in Russia to Gazprombank, the bank of the Russian gas giant Gazprom, closely linked to the Kremlin.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.standwithukraineeurope.com\/en\/auchan-mulliez-in-russia-a-late-withdrawal-under-pressure-from-the-kremlin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Auchan in Russia: a late withdrawal under pressure from the Kremlin - 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