Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Russia Accuses French Hypermarket Chain of Tax Violations

Wed 03 Apr 2024 | 10:42 AM
Israa Farhan

The Russian Tax Authority has concluded its investigation into the alleged tax violations by the French hypermarket chain Auchan in Russia and has demanded an additional payment of 181 million rubles ($1.95 million) in taxes for the year 2023.

According to Bloomberg, Auchan has not yet responded to these allegations.

In February, Andrei Lugovoi, the Deputy Chairman of the Security and Anti-Corruption Committee in the Russian State Duma, called on the Russian Ministry of Finance and the Federal Security Service to investigate the activities of French retail chains Auchan, Leroy Merlin, and Decathlon in the Russian market.

Lugovoi stated at the time that he had information suggesting Auchan had been maximizing its profits in Russia.

It is worth noting that many European retail chains, such as the Swedish IKEA, exited Russia after its war against Ukraine in late February 2022, while others, like Auchan, remained.

According to the news website RBC, Auchan's revenue in Russia amounted to 226 billion rubles last year.