French Decathlon continued to secretly sell clothes to Russia, according to investigation

The French sports equipment giant decathlon continued selling clothes to Russia despite announcing that it was suspending its commercial activities in that country as a result of the war in ukrainerevealed the investigative media Disclose this Tuesday.

The multinational, which had a turnover of 15.4 billion euros (US$16.9 billion) last year, announced that it was withdrawing from the Russian market shortly after the invasion of the former Soviet republic, in February 2022.

In October 2023, the French brand sold its 60 stores to the Russian Desport, a gesture that should make its departure from the country official. “Except it wasn’t like that.” indicates the investigation of the French media.

In recent weeks, Decathlon continued to supply “very discreetly” to Desport products from its flagship brands Quechua, Wedze and Kalenji, the digital media points out.

Based on internal documents, open source videos and statements from former employees, Disclose claims that Decathlon launched “an extensive system to hide its exports as part of a supply agreement with Desport.”

The pact, according to Disclose, was for at least US$12 million and included going through a shell company in Dubai and a subsidiary based in Singapore.

The operation, the media highlights, took Decathlon “to the limit of legality.”

“I found out in the summer of 2023 that Decathlon wanted to continue selling its products in Russia“an anonymous source, who recently left the company, told the outlet. “I immediately understood that it was a secret project”he added.

To satisfy Russian demand, Decathlon diverted part of its production initially intended for European Union (EU) markets and increased production in its Asian workshops, the investigation points out.

The sanctions imposed by the EU after the Russian invasion of Ukraine made it illegal to deliver to Russia weapons, luxury goods or equipment that could strengthen its industrial capacity. Sports equipment does not appear on this list.

Requested by AFP, Decathlon assured that “does not operate any stores in the Russian Federation, does not employ anyone and does not own shares in companies active in the country.”

But a little later he acknowledged that he had supplied clothing and stated that one of his priorities upon leaving Russia was to ensure the continued employment of his staff.

“To finalize the transaction, it was agreed, in accordance with current local and international regulations, to continue supplying a limited amount of products for a limited time so that the new owner could launch the operation and preserve jobs.”the company stated.