Auchan Nears Sale of Russian Stores Amid Sanctions Pressure

The French retailer is finalizing negotiations to exit Russia, facing challenges from European sanctions and local regulatory hurdles.

Auchan is negotiating the sale of its 230 Russian outlets, potentially to Gazprombank, as it seeks to comply with EU sanctions.
The company has faced operational challenges in Russia due to strict adherence to sanctions, putting it at a disadvantage compared to local competitors.
Russia accounts for about 10% of Auchan's revenue, but sales have been declining due to the geopolitical situation and economic sanctions.
Auchan plans to maintain its operations in Ukraine, where it operates 43 stores, despite also considering exiting Hungary.
The sale process requires approval from Russian authorities, who have tightened rules on foreign asset sales, increasing exit taxes and requiring high-level government approval.