France's Leroy Merlin wants to cede control of its DIY stores in Russia

A Leroy Merlin store located in the Moscow region, March 24, 2023. © NATALIA KOLESNIKOVA / AFP

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More than a year after the start of the war in Ukraine, Leroy Merlin, the French DIY equipment giant, has announced that it wants to sell all its stores in Russia. The Mulliez family, owner of the brand, had been singled out for having decided to stay there despite the invasion of Ukraine while other French groups had disengaged from the beginning of the conflict.

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This disengagement could take time, as it is the Russian authorities who must approve the cessation of activity. "A work begun several months ago in compliance with the applicable regulations," according to the statement. The stakes are high: Russia is the second largest market for Leroy Merlin after France. Its 113 stores in the country generate up to 20% of the company's turnover and employ 45,000 people. Other companies such as Danone or Schneider who have also asked to cease their activities have been waiting for a response for months.

This decision by Leroy Merlin comes a month after an article in the newspaper Le Monde. The daily wrote in mid-February that the Auchan supermarket store, another brand of the Mulliez family, would have contributed to the effort of the war led by Vladimir Putin via a collection of products intended for the Russian army in March 2022. Accusations categorically denied by Auchan who has chosen to stay in Russia, a country where the group makes 10% of its sales. Auchan generates more than 10% of its sales in Russia, for 230 stores, according to mid-2022 figures.

The choice to disengage from Russia has a cost for Western societies. French bank Societe Generale divested itself of its Russian retail banking subsidiary, Rosbank, last year. A withdrawal that had resulted in a charge of more than 3 billion euros in its accounts.

Before the war, more than 500 French companies (including 35 CAC 40 groups) operated in Russia, according to the Ministry of Economy. According to the same source, the France was, before the invasion of Ukraine, the largest foreign employer in Russia, with some 160,000 employees.

(

With AFP)

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  • Russia
  • France
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