Pointed out by Ukrainian President Volodymyr Zelensky, accusing them of “sponsor the Russian military machine”, some companies continue to operate in Russia. This is particularly the case for companies in the Mulliez family group, which owns Auchan and Leroy Merlin. Worse, according to Daily Telegraphit would seek to take advantage of the flight of its competitors to expand its activities in the country.
Leroy Merlin has the second highest turnover in Russia in terms of foreign companies, behind Philip Morris. More than 18% of its activity is carried out in this country.
Auchan is the most visible group brand in Putin’s homeland. The chain operates 231 stores, for a turnover of 3.2 billion euros, or more than 10% of its total revenue from ordinary activities in 2021 (30.5 billion euros). In Russia, Auchan generates 10% of its global sales.
The CEO of Auchan justified the decision to stay in Russia by emphasizing the particular role of the supermarket chain, which contributes to feeding populations. Note that the sign is in difficulty on its market share in France against the competition.
The only company in the Mulliez group to take a step aside is Decathlon. The French group specializing in sporting goods, under pressure since the start of the war in Ukraine, announced in a press release on Tuesday the suspension of its activities in Russia, due to supply problems.
Chinese companies
Other companies continue to operate in Russia, such as Chinese companies for example. Huawei, Alibaba or Lenovo could capture the market shares left by Westerners. The Chinese ambassador to Russia has also asked Chinese businessmen to “fill the void” left by Western European countries and the United States.
Alongside these companies that choose to stay in Russia or, on the contrary, to leave the country, others have decided to temporarily reduce their operations while keeping return options open. AB Inbev, 2% of whose income comes from Russia, retains this possibility of return.
Finally, some companies are suspending business operations while continuing others. Among them, we find Caterpillar or BNP Paribas.