The French sporting and leisure goods group Decathlon continued to deliver clothing to the Russian buyer of its stores, notably through a ” shell company “ in Dubai, according to a survey published Tuesday December 19 by the media Disclosed.
While most Western groups left the country after the start of the war in Ukraine, Decathlon, for example, delivered Kalenji jogging jackets, Wedze ski jackets and Quechua pants and shoes to Russian Desport stores, for a total of of at least twelve million dollars (around eleven million euros), according to this source. These products were transported in November by plane from Bangladesh, where they are produced, via Dubai, where a shell company bought the products, according to internal documents and testimonies collected by Disclosed.
The Russian invasion of Ukraine on February 24, 2022 triggered unprecedented sanctions and an exodus of foreign companies. The export of arms, luxury items or goods that could contribute to strengthening Russian industrial capabilities is, in particular, firmly prohibited by Europe. Sporting articles are not affected by these measures.
The Mulliez group, owner of Decathlon, is one of the rare French groups to have maintained its activities in Russia. In particular, he kept Auchan there, which generates more than 10% of its sales there. A few weeks after the start of the war, Decathlon announced that it was suspending the commercial activities of its stores and its website in Russia.
The group maintains that it wanted to “support the buyer”
More than a year later, in the summer of 2023, the distributor finally received approval from local authorities to resell thirty-six stores to a Russian company, ARM. But when they reopened in November, Decathlon products were available in these stores, according to images seen on Russian social media.
According to documents consulted by Disclosed, the group urgently ordered goods from its Asian suppliers. To avoid the shipments being blocked at customs, a Decathlon subsidiary based in Singapore purchased them and transported them through Dubai.
Decathlon “does not operate any stores in the Russian Federation, does not employ any employees and does not hold any interests in companies operating in this territory”reacted management to Agence France-Presse (AFP). “As part of its disengagement from the Russian Federation, Decathlon made it a priority to ensure that employment is maintained with the local buyer, for employees who wish it”added the group in an email.
“This is why Decathlon has chosen to sell all of its activities and assets to the company ARM which owns the Desport brand. In order to finalize the transaction, it was concluded – in accordance with local and international regulations in force – to proceed, for a limited period, with the supply of a specific quantity of products to support the buyer and the launch of its activity while preserving thus the jobs of ex-teammates », the company said. The European Union (EU) adopted on Monday a twelfth package of sanctions against Russia, which notably includes a ban on imports of Russian diamonds into the EU.