Decathlon's "secret project" to keep doing business in Russia, 19 December 2023

...On 29 March 2022, a month after the war started in Ukraine, Decathlon announced it was putting an end to its activities in Russia...The firm’s departure was formalised in October 2023, with the sale of its 60 stores to a local buyer, the Desport brand...

For several weeks now, the French multinational has continued to discreetly supply the Russian market with products bearing its flagship brands: Quechua, Wedze and Kalenji. After conducting an investigation based on internal company documents, open-source videos and testimonies from several former employees, Disclose can reveal that Decathlon has set up a large system to conceal its exports under a supply contract with Desport for at least $12m. At the heart of the move, on the fringes of legality, are the French group’s top leaders, a shell company domiciled in Dubai and a subsidiary of the brand based in Singapore...

The “secret project” with Russia was set up quickly, as evidenced by an email sent in September 2023 by a Decathlon production manager in Europe. In the email, which Disclose has seen, the executive tells colleagues enthusiastically about the forthcoming signing of “a supply contract with the new [Russian] buyer”. The confidential agreement was expected to be worth $12m, for 1.2m products to be sold as quickly as possible in Desport stores.

To be able to supply such large quantities without being seen, and over a short period of time, the sports group developed a strategy revolving around two tricks. The first: divert some products initially intended for European stores, as evidenced by the email sent in September 2023: “For orders meant to be sent to Europe, please put some aside for Russia”. The production manager added that he had got “full support from Jean-Marc Lemière”, who is none other than the group’s chief financial officer. Disclose contacted Jean-Marc Lemière but received no response...

The second trick is more sophisticated and much more opaque. To be able to fulfil its Russian contract, Decathlon resorted to a Singapore-based subsidiary, Desipro. With its help, the group ordered goods urgently from its Asian suppliers...The sports retail giant, clearly not averse to stunts, then demanded from its Asian partners that they fly their consignments to Dubai...

A statement that clashes with the group’s official position. When Disclose contacted Decathlon about the continuation of trade with Russia, the company stated that it is “doing everything possible to put an end to the resale of [its] products on Russian Federation territory”. This is a reference to its clothes being sold illegally by individuals on Russian e-commerce sites. But no mention of the goods that the group itself ships to Vladimir Putin’s country. Decathlon did not respond to our request for further information...