Decathlon allegedly continued to deliver apparel to the purchaser of its Russian stores

The French sports and leisure goods conglomerate reportedly continued to supply clothing to the Russian acquirer of its outlets, particularly through a ‘shell company’ in Dubai, as detailed in an investigation published on Tuesday by the media outlet Disclose.

Amidst the departure of numerous Western entities following the onset of the Ukraine conflict, Decathlon, for instance, dispatched Kalenji jogging jackets, Wedze ski jackets, and Quechua pants and shoes to the Russian Desport stores, amounting to at least $12 million (approximately €11 million).

These items were airlifted in November from Bangladesh, where they were manufactured, via Dubai, where an intermediary company reportedly acquired the goods, as indicated by internal documents and testimonies compiled by Disclose.

The Russian invasion of Ukraine on February 24, 2022, triggered unprecedented sanctions and an exodus of foreign companies.

Although the export of weapons, luxury items, or goods that may bolster Russian industrial capabilities is strictly prohibited by Europe, sporting articles remain unaffected by these measures.

Mulliez maintains its operations in Russia

The Mulliez Group, owner of Decathlon, remains one of the few French entities to maintain its operations in Russia, notably Auchan, which generates more than 10% of its sales there.

Despite Decathlon’s announcement of suspending commercial activities in its Russian stores and online site a few weeks after the war’s commencement, the retailer ultimately received approval from local authorities, in the summer of 2023, to sell 36 stores to a Russian entity named ARM.

However, upon their reopening in November, Decathlon products were reportedly available in these outlets, as evidenced by images from Russian social media platforms.​

In a bid to prevent potential customs blockage, the company urgently procured goods from its Asian suppliers. To facilitate the process, a Decathlon subsidiary based in Singapore purchased and had the goods transshipped via Dubai.

Decathlon’s management, declining to comment on Monday evening, stated to Disclose that it was “doing everything in its power to halt the resale of (its) products within the territory of the Russian Federation.”

On Monday, the European Union imposed a twelfth set of sanctions against Russia, notably encompassing the ban on Russian diamond imports into the EU.