War in Ukraine – “Values are more valuable than profits”. Volodymyr Zhelensky Expressed himself By video conference, this Wednesday, March 23, in the presence of French delegates and senators. He also did not forget to point the finger at the large French companies with an economic presence in Russia.
Not all of them were mentioned, but the Ukrainian president chose three names: “French companies must leave the Russian market. Renault, Auchan (Mulliez group), Leroy Merlin and others must stop being sponsors of Russia’s war machine, ”he reiterated before the national delegation. “They need to stop funding Killing children And women, rape, ”he said.
These groups have a strong presence in Russia
Renault has had a strong presence in the Russian market since 2012 with the acquisition of Lada carmaker AvtoVAZ Group, the country’s number one car market (almost one-third of sales). Russia is also the second international market for the French manufacturer. Renault is even more exposed because of its affiliation with Russia’s Russian company Rostek, directed by Vladimir Putin’s ally Sergei Tsemesov.
Not just the diamond brand in this case: Mulleys Group distributors (Auchan, Decathlon) or even Leroy Merlin Are well established in the country of leadership Vladimir Putin Since 2000. DIY expert Leroy Merlin, with 36,000 employees in Russia and 107 stores in 62 cities, is the second largest market after France and accounts for more than 18% of its operations.
Employees of the Ukrainian branch of Leroy Merlin asked the brand to suspend its operations in Russia after the bombing of a group store in Kiev on Monday.
According to Achan, it has 30,000 employees and 231 stores in the country, where the brand has a turnover of 2 3.2 billion by 2021 – or 10% of its revenue. The Decathlon sports brand operates in at least 60 stores there.
For now, a Mulleys team like Renault is trying to keep a low profile on the matter and has not spoken officially. Domestically, distributors would have “chosen not to leave Russia to continue to pay and feed French workers”, CFDT union representative Gilles Martin said on Monday, March 14.
Total promises will lose itself
However, since the start of the war on February 24, not all French groups have taken action, but often the position taken depends on the size of their investment and their local market.
Total is a hydrocarbon company On Tuesday, March 22 it was announced that Russian oil purchases would end by the end of 2022. A “strong decision” he explains is taking responsibility and not “under pressure”, Especially politics. “You cannot make hasty decisions without knowing the consequences. For us, the question is whether this Russian oil can be changed, ”the leader explained.
Luxury groups such as Hermes, Chanel, LVMH and Kering have announced the closure of their stores “temporarily”. If Russia appears to be the preferred land for luxury, it will actually represent only a small fraction of their revenue: 1% according to Kering or Burberry, 2% according to LVMH.
On March 6, the French agri-food group Donon indicated that it would continue its operations in Russia, where it generates 5% of its revenue and employs 8,000 employees, but stopped all investment in the country.
See also Hafost: Jelensky compares Mariupol to the ruins of Verdun in front of French elected officials
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