US-sanctioned Gazprombank could buy Auchan chains in Russia

Gazprombank, one of Russia’s largest banks that is also under heavy US sanctions, is reportedly close to taking over the Russian operations of the Auchan retail chain, sources said cited 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 Russia’s large-scale invasion of Ukraine.

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

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

Still French media reported on October 24, it was announced that Auchan was in final negotiations to sell its Russian subsidiary to a local buyer and is expected to complete the sale in the coming weeks.

The potential buyer was not mentioned in previous reporting, only that Auchan was reportedly keen to sell as Russia’s ‘exit tax’ has risen from 10% to 15%, with the potential to reach 35%.

As Le Monde noted, Gazprombank bought Ikea’s Mega mall chain, which included 14 locations across Russia and housed Auchan stores.

Gazprombank has been under US sanctions since 2014, with additional sanctions announced by the US and Britain in 2022 after the outbreak of the full-scale war. In January 2023, Russian state-controlled media announced that US banks were halting the transfer of dollars for Gazprombank.