Twenty-three French companies continue operating in Russia in 2025, roughly one-third of the 75 present before Moscow’s full-scale invasion of Ukraine in February 2022, according to Euronews. Two of them — Auchan and Leroy Merlin — rank among the top 20 foreign firms by sales in Russia in 2024. Leroy Merlin, with $6.8 million in sales, was also among the top taxpayers in 2023 alongside L’Oréal. Overall, French businesses still active in Russia contributed around $565 million in taxes to the Russian budget.
Economic footprint and justification narratives
Auchan has said it intends to remain in Russia to “help feed the population,” a phrase echoed by other French agrifood groups like Bonduelle. These companies justify their continued presence through “social responsibility,” though analysts note such rhetoric often masks commercial motives. Their operations indirectly support Russia’s wartime economy by sustaining employment and tax revenues.
Partial exits and regulatory barriers
Out of 52 French firms that suspended operations after 2022, only 16 — including Renault — have fully withdrawn. Exiting Russia has become increasingly costly: companies must sell assets at a 60% discount and pay an exit tax reaching 35% of the sale price. Some corporations, such as Kering, Décathlon, and Hermès, adopted a “standby mode,” halting local activity while retaining management or ownership structures to avoid total departure.
Financial impact and Kremlin pressure
According to the Kyiv School of Economics, foreign companies remaining in Russia paid over €17.2 billion in taxes in 2024 alone, with cumulative contributions since the invasion exceeding €51.8 billion. These funds have become a crucial revenue stream for the Kremlin’s war economy. Moscow has also imposed mounting pressure on Western firms through threats of nationalization, account seizures, and criminal liability for executives.
Political manipulation and reputational risks
The Kremlin uses the continued presence of French firms as propaganda, portraying it as evidence that “Europe is adapting” to the war. At the same time, France’s remaining companies face growing reputational damage as their taxes and operations indirectly sustain Russia’s aggression. Experts argue that consistent public and governmental pressure is necessary to push these corporations toward a full exit and uphold ethical accountability.
