(Bloomberg) --

Auchan Retail leaving Russia and transferring its assets to a third party in the country would only reinforce the local financial ecosystem, a solution that wouldn’t bring peace, the head of the French grocery chain said.

Auchan’s decision to remain in Russia isn’t driven by economic and financial reasons, Yves Claude, chairman and chief executive officer of Auchan Retail told Le Journal du Dimanche in an interview. He expects business in the country to be unprofitable this year. Russia generated 3.2 billion euros ($3.51 billion) in revenue in 2021, representing 10% of total revenue at Auchan Retail.

Claude’s comments come after Ukrainian President Volodymyr Zelenskiy called on French companies including Auchan to exit Russia, accusing them of sponsoring Vladimir Putin’s war machine. 

In a tweet Saturday, the Ukrainian Foreign Affairs Minister Dmytro Kuleba urged consumers to boycott the grocery chain, which is also present in Ukraine with 43 stores. Kuleba also targeted sporting goods chain Decathlon and home improvement brand Leroy Merlin. 

The three brands employ 77,500 workers in Russia, while Auchan has 6,000 employees in Ukraine.

“If Auchan leaves, we’ll deprive 30,000 of their job” in Russia, Claude said. An exit would also expose local managers to criminal proceedings for fraudulent bankruptcy, he added, a similar justification Leroy Merlin put forward earlier this week to explain its decision to keep operating in the country.

©2022 Bloomberg L.P.