Gazprombank, sanctioned by the United States, can buy Auchan chains in Russia

According to sources, Gazprombank, one of Russia’s largest banks that is also under heavy US sanctions, is set to acquire the Russian operations of retail chain Auchan. aforementioned by Le Monde on October 25.

Auchan, a French hypermarket chain, remains one of the last Western companies operating in Russia after many companies left the market following the large-scale Russian invasion of Ukraine.

At the beginning of large scale invasionRussia reportedly accounted for 10% of Auchan’s global sales. Auchan CEO Yves Claude said 30,000 people, including 40% of employees and shareholders, could lose their jobs if the company exited the market.

In March 2022, Auchan CEO Yves Claude told the Journal du Dimanche that the company does not leave Russia despite accusations of financing the war, citing the need to keep employees and continue “feeding the populations of both Ukraine and Russia.”

However, the French media reported On October 24, Auchan was in final negotiations to sell its Russian subsidiary to a local buyer and is expected to finalize the sale in the coming weeks.

The potential buyer was not named in the previous report, only that Auchan was eager to sell as Russia’s “exit tax” increased from 10% to 15%, with the potential to reach 35%.

As Le Monde noted, Gazprombank bought the Mega shopping center chain from Ikea, which included 14 locations across Russia and housed Auchan stores.

Gazprombank has been under US sanctions since 2014, and the US and UK announced additional sanctions in 2022 following the start of the full-scale war. In January 2023, Russian state media announced that US banks suspended dollar transfers for Gazprombank.