Auchan faces investigation into Russian subsidiary over allegations of fraud

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Issued on: 04/30/2023 – 19:55

French retailer Auchan said on Sunday it was cooperating fully with French judicial authorities in an investigation into the business practices of its Russian branch.

“Auchan is a victim in the case and reserves the right to bring a civil action. The investigation aims to clarify certain facts within the Russian subsidiary of Auchan but is not directed against Auchan itself”, has specified the company.

“Auchan has been cooperating fully with the demands of French justice for three years in this case which, it must be remembered, revolves around an allegation of fraud and overcharging of products that Auchan Russia buys in Russia, and is therefore an exclusively Russian,” he added.

The French magazine Challenges and the Financial Times had previously reported that the French financial prosecutor’s office had opened this investigation into the Russian branch of Auchan. The French financial prosecutor’s office did not immediately respond to a request for comment.

Last month, Auchan denied opening a new store in Russia and said it was renaming an existing store instead.

The retailer is among the few Western companies to have chosen to maintain a presence in Russia since the outbreak of war in Ukraine in 2022.

Earlier in February, a video published by French media Le Monde and Russian online newspaper The Insider revealed that Auchan Russia, along with other French retailers, was supplying the Russian army through donations.

The company, however, denied responsibility for the matter, saying it had no knowledge of the recipients’ identities.

(FRANCE 24 with Reuters)

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