French chain Auchan leaves Russian market, prepares to sell subsidiary - media

Le Figaro and La Lettre report.

According to La Lettre, Auchan has already found a local buyer to sell its branch in Russia and is in final negotiations with him. The article adds that the deal may be signed in the coming weeks.

At the same time, Le Figaro reports, citing a source close to the company, that Auchan has found two potential buyers for its subsidiary in Russia.

"Unlike other, less cautious European distributors, Auchan strictly adheres to the sanctions imposed on Russia. The chain does not invest or return a single penny. This puts it at a great disadvantage compared to local players owned by Russian oligarchs, who can do nothing with their money but invest it in their businesses," the source adds.

The source also notes that the French chain now has to agree on its exit from the market with the Russian authorities in order to avoid the fate of other foreign companies such as Danone or Carlsberg: their assets were effectively nationalized by Russia.

Instead, the Russian propaganda state news agency TASS reported, citing Auchan's press service, that the chain continues to operate in the Russian market. They also allegedly noted that the company does not comment on reports of the sale of its subsidiary.

• On April 15, Ceetrus, an Auchan Group company that owns and operates shopping malls, closed a deal to sell its assets in Russia.