The French company Leroy Merlin will abandon the management of the business for the sale of building materials in Russia and transfer all assets to local entrepreneurs. This is stated in the message published on Friday, March 24, by the Adeo group, which owns the brand.
"After more than 18 years in Russia, the transfer of control of Leroy Merlin to local management should save jobs for 45,<> employees ... The deal must be approved by the relevant authorities in Russia," the statement said.
After the transfer of the business under the control of the new owner, the Leroy Merlin retail chain will continue to work, retain all the staff and will open new stores. So the decision of the company commented in the Ministry of Industry and Trade of Russia.
"We are aware of the situation with Leroy Merlin, we are in touch with the company. We note that the owner (the French Adeo group) made a civilized and reasonable decision to transfer assets in Russia to local management. We will monitor the events and help Russian managers in solving all emerging issues, "TASS quoted Deputy Minister of Industry and Trade Viktor Evtukhov as saying.
Thus, the departure of the company should not seriously affect the Russian market of building materials, since only the owner will change, and the business itself, in fact, will remain. Confidence in this was expressed by the President of the All-Russian Public Organization of Small and Medium-Sized Businesses "Opora Russia" Alexander Kalinin.
"In fact, all the value of the business – production, logistics and sales technology – will remain in Russia. Most likely, they will take their brand with them, and will be made following the example of the former McDonald's, which was transformed into the network "Delicious - and period", - suggested the interlocutor of RT.
According to him, Leroy Merlin not only worked in Russia for a long time, but also invested a significant amount of money in the country's economy, and also had good revenue. Against this background, the main reason for the company's departure from the Russian Federation could be external political pressure, the expert is sure.
"I do not think that the company would have voluntarily left our roar if it had not been under heavy pressure from the French authorities. She had plans here to develop and lease new space. This business brought her profit," Kalinin added.
"They leave – all the best"
Recall that international companies began to massively announce their departure from Russia in the spring of 2022. This began after Western states imposed large-scale sanctions against Moscow because of the events in Ukraine.
Meanwhile, only a small proportion of foreign firms have completely ceased their work in Russia, while most of the organizations that announced their departure only limited their activities or sold their assets to new owners. This was told in an interview with RT by the head of the State Duma Committee on the Financial Market Anatoly Aksakov.
"About 40-50% of companies made statements about leaving, but, in fact, almost all of them remain. Either they change the signs, or formally transfer ownership of this business to someone, but continue their activities. Moreover, almost everyone declares a return to Russia after a while, "the deputy said.
At the same time, the decision of many international companies to leave Russia turned into significant financial losses for them, as previously stated by President Vladimir Putin. The head of state also explained the actions of Western organizations by political motives.
"Under pressure from their governments (foreign entrepreneurs. — RT) are leaving our market - all the best. But because of the loss of our market, they incur huge losses – it's their choice, it's their decision. Many of them – I know this personally, with some acquaintances personally – do it without any pleasure," Putin said.
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According to him, foreign companies do not want to lose the established business, in which they "invested their soul" and funds, but at the will of the authorities of their countries are forced to curtail work. However, the outgoing brands leave behind a "good legacy" in the form of production infrastructure and well-trained personnel, the Russian leader believes.
"Probably, someone thought that in our country it would immediately collapse and fall apart. Nothing of the sort is happening... Our companies, our entrepreneurs pick up these enterprises or even directions and continue this work, and very successfully. It is important for us that our domestic manufacturer has received unique opportunities for development, and, of course, this should be fully used," the president emphasized.
As Russian Finance Minister Anton Siluanov noted earlier in an interview with RT, with their sanctions against Moscow, Western governments have jeopardized their own business. As a result, companies that have completely ceased cooperation with the Russian Federation now have to reduce production.
"This leads to a simple thesis - introducing restrictions, it is impossible not to feel them on yourself. We, in turn, do not despair at all. Russia is studying and working in new conditions. Moreover, responding to new challenges, we began to actively invest in our own competencies, which we previously acquired abroad, "the head of the Ministry of Finance added.