Auchan's exit from Russia may reflect broader corporate responses to geopolitical tensions and the challenges of operating in hostile environments.
The involvement of North Korean soldiers in the Ukraine war could signal a shift in military dynamics and further complicate international relations in the region.
The sale of Auchan's Russian subsidiary could pave the way for other Western companies to reconsider their operations in Russia as the geopolitical landscape evolves.
If North Korean troops engage in combat, it may lead to increased military support from other nations to Ukraine, further escalating the conflict.
Auchan to Sell Russian Subsidiary Amid Ongoing Ukraine Conflict
French retailer Auchan is reportedly in the final stages of negotiations to sell its Russian subsidiary, a significant move after two and a half years of maintaining its presence in the country following the invasion of Ukraine. According to La Lettre, Auchan has found a local buyer and a signature for the deal is expected in the coming weeks. This decision follows the Mulliez family group's earlier announcement to cede control of its Russian operations to local management, a move criticized by many, including Ukrainian President Volodymyr Zelensky.
Currently, Auchan operates approximately 230 stores in Russia, employing around 28,000 people, and its operations there account for about 10% of the group's total turnover, amounting to over 3 billion euros. The decision to exit Russia comes amid declining sales, with Auchan's overall revenue affected by the situation in both Russia and Ukraine.
Additionally, Auchan is exploring a potential exit from Hungary, where it operates 24 stores. The Hungarian government's policies have made it challenging for foreign retailers, prompting Auchan to consider this move as well.
North Korean Soldiers Allegedly Engaged in Ukraine War for Russia
In a separate but equally concerning development, reports indicate that thousands of North Korean soldiers may be preparing to fight for Russia in the ongoing Ukraine conflict. South Korea's defense minister has accused North Korea of effectively selling its military to support Russia's war efforts, labeling the soldiers as “cannon fodder mercenaries.”
According to South Korean intelligence, as many as 3,000 North Korean troops are currently stationed in Russia, allegedly disguised in Russian uniforms and operating under Russian military command. This development has raised alarms in the international community, particularly in the United States, where officials warn that the involvement of North Korean soldiers could signify a serious escalation in the conflict.
US Secretary of Defense Lloyd Austin has confirmed the presence of North Korean troops in Russia, emphasizing that their potential deployment in Ukraine would not only impact the European theater but could also have significant ramifications for Indo-Pacific geopolitics. The situation underscores Russia’s increasing desperation as it continues to suffer heavy losses in Ukraine, prompting reliance on external military support.
