Controversies
Following the 2022 Russian invasion of Ukraine, many international, particularly Western, companies pulled out of Russia. Leroy Merlin, however, on 11 March announced that it has no plans to reduce its operations in Russia, where it operates 143 stores.[4] On 17 March, they cut off the Ukrainian office from corporate communications and stated that they would increase supplies to the Russian Federation.[5]
Leroy Merlin has a strong presence in Russia and generates 18% of its turnover there.[6] In 2020, the company paid $335 million in taxes as a result of their operations in Russia. In 2021, the company's revenue amounted to 457 billion rubles.[7] The company has been criticized for making indirect contributions to the Russian military effort.[8]
On the night of 20–21 March 2022, a shopping centre in Kyiv housing a Leroy Merlin shop was bombed. Shop employees called on the company to leave Russia,[9] as did the Ukrainian MP Oleksiy Honcharenko. The latter, elected in the constituency of Odesa, and member of the Ukrainian delegation to the parliamentary assembly of the Council of Europe, broadcast a video.[10] The video was shot in front of the devastated store.
In a statement to AFP, Adeo, Leroy Merlin's holding company, said a closure would be considered a "premeditated bankruptcy"[11] and says that it has an "employer's responsibility towards [its] 45,000 employees and their families who have been contributing to the building of Leroy Merlin Russia for the past 18 years". However, there are reports of insults and threats from customers following the company's continued operations in Russia.[12]
In March 2023, Adeo announced its intention to transfer the Russian Leroy Merlin network to local management. According to the company, this process has already begun.[13] On 24 July 2023, the company's Russian branch in Moscow was struck by a drone attack.
Earlier in July, it was named "an international sponsor of war" by the Ukrainian government after Russia obliged all large companies operating in the country "to contribute directly to its war effort". It was placed on the list alongside Unilever and Procter & Gamble.[14]
