Why do these French companies stay in Russia at all costs?

Michelin, Renault, LVMH, Publicis, Legrand, CMA-CGM…have stopped their activity in Russia because the master of the Kremlin has declared war on Ukraine. But this is not the choice of all French companies. Two years after the start of the invasion of Ukraine, French companies continue their activity in the country under the leadership of Vladimir Putin.

According to a real-time census by researchers at the American University of Yale, a total of 64 French companies have at least partially maintained activities in Russia, compared to 18 French groups that have withdrawn. Companies such as Lactalis, Groupe Rocher, Groupe Le Duff (which in contrast claims to have left the country last year), Auchan, TotalEnergies and Saint-Gobain are also present.

Auchan asserts “ Stay in Russia and Ukraine to feed the local population and continue to employ its workforce

” Lactalis makes a comparative statement as it claims to “maintain. Production activities to feed the civilian population ” For the Rocher group, he says he will stay for ” Don’t leave your teams on Russian territory” where it has 453 employees and 350 franchised stores, representing about 4% of its turnover.

Accused of contributing to the war effort of the Russian state

All profess to respect sanctions and condemn war. Auchan” Sources only from local players and has prevented any new investment in Russia ». Its Russian subsidiary operates independently and has a “No There is no financial flow with it ” Bercy for his part affirms that ” French companies must strictly respect the sanctions against Russia. For the rest they are free to make their choice. Yet the ministry’s discourse at the start of the war was more offensive.

However, “ Multinational companies can be accused of contributing to the war effort of the Russian state, especially by paying their taxes in the country », underlines Anna Kiefer, Litigation and Advocacy Manager for the NGO Sherpa. “ These groups are involved in a form of complicity with the Russian state. There is a contradiction between the liability claims of these companies and those pending in Russia

», confronts Patrick d’Humières, author of “Business and Geopolitics: Business or the Planet” (Dunod).

Expensive withdrawals

but” It was noted that subsidiaries abandoned by foreign companies in Russia were destined to be taken over by Russian power. This is a situation we want to avoid », Rocher justifies the group. “ While other groups left Russia with significant losses, they gave gifts directly to local buyers, in other words to oligarchs and people close to Putin. », we bid at Auchan.

These companies also tarnish their image by staying in the country. President Zelensky’s statement to the National Assembly on March 23, 2022, alleging “ Renault, Auchan, Leroy Merlin and others would become “sponsors of the Russian war machine”. » and them ” Stop financing the killing of children, women, rape ”, was devastating. Calls for boycott and numerous controversies are also devastating for these companies.

But the choice is also slim because the departure is expensive. Renault, for example, suffered a net loss of 2.2 billion euros and gave up its second-largest market by volume after France. Societe Generale, for its part, posted a net loss of 3.2 billion euros. A bill for total energy that remains “ Shareholders of Novatek (19.4%), Yamal LNG (20%) and Arctic LNG 2 (10%)

» is also heavy with $14.8 billion in asset write-downs » In 2022. A total of 600 European multinationals have lost at least 100 billion euros « After the sale, closure or downsizing of their Russian operations », estimates the analysis of Financial Times. Not to mention the fiasco of Danone’s departure that was confiscated. For companies still present, therefore, confusion remains.