Carrefour Russia freezes hypermarket construction projects

Carrefour in Russia is freezing its projects that involve constructing hypermarkets and is opting to develop its network in rented space, The Moscow Times reported. Karfur Rus, Carrefour’s Russian division, is backing out of deals to buy land in the regions to build its hypermarkets, anonymous sources reportedly said. Karfur Rus is being sued by Primel in the Penza Region Arbitration Court seeking “compulsion to sign an agreement”. Primel reportedly signed a preliminary agreement in May with Karfur Rus on the sale of a plot of land in the Penza region for several million dollars, which Karfur Rus was supposed to close within 30 days. However the company still hasn’t come through with the deal. A source close to Karfur Rus said that that this summer the French retailer unexpectedly abandoned several deals to purchase plots of land in the regions.

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