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Retail

France's Auchan May Face Semi-Finished Products Ban in Russia

By Publications Checkout
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France's Auchan May Face Semi-Finished Products Ban in Russia

Groupe Auchan, Russia’s third-largest retailer, may be restricted from making semi-finished products in the country after the food-safety regulator said meat used for pizzas violated quality standards.

The watchdog, known as Rosselkhoznadzor, will seek to suspend output of such products at Auchan Moscow stores, according to a statement published on Tuesday.

The watchdog earlier inspected meat and sausages in Auchan stores and found microbiological violations in 35 out of 47 checks, it said.

Auchan, the largest foreign retailer in Russia, is coming under pressure amid geopolitical tensions.

The European Union prolonged economic sanctions against Russia in June, while the Kremlin retaliated by extending a ban on certain food imports. Russia also started destroying illegally imported food last week, with footage of the work highlighted in state news programs.

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Last year, Russia temporarily shut as many as 12 McDonald’s restaurants on food-safety concerns amid tensions with the US over Ukraine. Russia has also banned Georgian wines, Ukrainian sweets and Moldovan fruits in the past in the wake of political disputes.

Auchan may build a 2.5-billion ruble facility in Russia’s Tambov region to process meat from local farmers, RBC newspaper reported, citing local authorities and Auchan spokeswoman Maria Kournossova. Auchan’s Russian press office declined immediate comment when contacted by Bloomberg.

News by Bloomberg, edited by ESM

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