PARIS: French sports activities retail large Decathlon has secretly continued promoting garments in Russia regardless of formally pulling out in protest at Russia’s struggle in Ukraine, a media report printed Tuesday (Dec 19) mentioned.
The multinational retailer, which posted gross sales of 15.4 billion euros (US$16.9 billion) final yr, introduced inside weeks of Russia’s invasion of Ukraine that it could withdraw from the Russian market.
In October of this yr, it bought its 60 native Russian retailers to Desport, the report in investigative media web site Disclose mentioned, a transfer that was offered as marking the tip of its Russian presence.
“Besides it wasn’t,” the report mentioned.
In latest weeks, “very discreetly”, Decathlon had continued to produce Desport with merchandise carrying its flagship manufacturers Quechua, Wedze and Kalenji, Disclose mentioned.
Citing inner paperwork, open-source movies and statements from former employees, Disclose mentioned that Decathlon had put in place “an unlimited system to hide its exports as a part of a provide settlement with Desport” which it mentioned was price not less than US$12 million, utilizing a shell firm in Dubai and a Singapore-based subsidiary.
The operation, Disclose mentioned, took Decathlon “to the boundaries of legality”.
“I discovered in the summertime of 2023 that Decathlon wished to proceed promoting its merchandise in Russia,” the media quoted an unnamed supply who lately left the corporate as saying.
“I instantly understood that it was a secret venture.”
To fulfill Russian demand, Decathlon diverted a part of its manufacturing initially earmarked for EU markets, and boosted output at Asian manufacturing websites, the report mentioned.
EU sanctions following Russia’s assault on Ukraine on February 24, 2022, made it unlawful to ship weapons, luxurious items or gear that would strengthen industrial capability to Russia.
Sports activities articles should not on the record.
Requested for remark by AFP, Decathlon mentioned that it “operates no shops within the Russian Federation, employs no employees and owns no stakes in lively corporations within the nation”.
It added that Decathlon was doing “every thing to cease the resale on Russian Federation territory of merchandise bought in Europe by third events”.
