Germany’s OBI sells hardware stores in Russia: reports

According to Russian media, German DIY company OBI has sold its outlets in Russia to a local investor.

As sanctions on Russia for its military intervention in Ukraine grow, Western companies are being pressured to sell or close their operations in the country.

“Yesterday (Monday), an agreement was signed on the sale of the stake in the OBI group in Russia to a Russian investor, a lawyer involved in the sale, Dmitry Galantsev, was quoted as saying by TASS news agency.

The name of the buyer and the amount of the transaction was not given.

Management of the OBI stores was conferred to the Audit Group consultancy until the sale is completed, according to the Vedomosti daily, which said the consultancy declined to provide any information about the buyer and the amount of the transaction.

The German management of OBI, which is part of Tengelmann Group, declared in March it was permanently closing its shops in Russia, where it has been present for nearly 20 years.

Vedomosti reported then that a serious conflict broke out between the majority German shareholder in the Russian unit and the local managers.

The newspaper reported the shops stayed open a week after their closure was announced, and a Russian executive then said they would reopen, prompting a denial from the group.

Foreign-owned companies that halt operations in Russia due to Russia’s military intervention in Ukraine are being closely monitored by Russian authorities.

Without using the word “nationalisation,” Russian President Vladimir Putin said he favours appointing outside administrators to govern enterprises whose foreign owners leave so that the operations might be transferred to someone who wants to run them.