Decathlon secretly supplying Russia through Dubai shell company, S’pore-based subsidiary: Report

Decathlon secretly supplying Russia through Dubai shell company, S’pore-based subsidiary: Report

PARIS – French sports retail giant Decathlon has secretly continued selling clothes in Russia despite officially pulling out in protest at Russia’s war in Ukraine, according to a media report on Dec 19.

The multinational retailer, which posted sales of €15.4 billion (S$22.4 billion) in 2022, announced within weeks of Russia’s invasion of Ukraine that it would withdraw from the Russian market.

It noted in October 2023 that it had sold its 60 local Russian outlets to Desport, a move presented as marking the end of its Russian presence, according to the report on investigative media site Disclose. “Except it wasn’t,” the report added, noting that in recent weeks, “very discreetly”, Decathlon had continued to supply Desport with products carrying its flagship brands Quechua, Wedze and Kalenji.

Disclose, which cited internal documents, open-source videos and statements from former staff, said Decathlon had put in place “a vast system to conceal its exports as part of a supply agreement with Desport” that was worth at least US$12 million (S$16 million).

It added that the arrangement involved using a shell company in Dubai and a Singapore-based subsidiary.

Disclose said the operation took Decathlon “to the limits of legality”. It quoted an unnamed source who recently left the company as saying: “I learnt in the summer of 2023 that Decathlon wanted to continue selling its products in Russia. I immediately understood that it was a secret project.”

Read more: straitstimes.com

Photo: straitstimes.com

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