French DIY Retailer Leroy Merlin To Exit Russia

French DIY retailer Leroy Merlin announced Friday that it would exit Russia, ending an 18-year presence that has been criticised by Ukraine, with Kyiv accusing the company of sponsoring Moscow's "war machine

Paris, (UrduPoint / Pakistan Point News - 24th Mar, 2023 ) :French DIY retailer Leroy Merlin announced Friday that it would exit Russia, ending an 18-year presence that has been criticised by Ukraine, with Kyiv accusing the company of sponsoring Moscow's "war machine".

Its parent company, Adeo, said it was "transferring control" of Leroy Merlin to local management in Russia, where it is among the biggest foreign employers.

Adeo said the move "should preserve the jobs of the 45,000 employees and ensure that the company's activity remains at the service" of the population.

"This process is the result of work initiated several months ago in compliance with international regulations," it said, adding that the transaction is subject to the approval of Russian authorities.

A slew of foreign firms closed up shop in Russia last year in the wake of its invasion of Ukraine and subsequent Western sanctions against Moscow.

But the Mulliez family, which owns Leroy Merlin and other major French retailers including supermarket Auchan and sports shop Decathlon, maintained its operations in the country.

Adeo said last year that it would suspend new investments in the country, saying that leaving the country raised the risks of "expropriations".

Leroy Merlin has 113 stores in Russia, its second biggest market after France. Russia accounts for as much as 20 per cent of Leroy Merlin's revenue.

Ukrainian President Volodymyr Zelensky called out Auchan and Leroy Merlin in a speech to the French parliament in Paris last year, saying they "must stop sponsoring the Russian war machine."