Reducing Activities: company scaling back some business operations while continuing others
Stay Scaling Back
LVMH, is a French holding multinational corporation and conglomerate specializing in luxury goods, headquartered in Paris.
Reducing Activities: company scaling back some business operations while continuing others
Stay Scaling BackAs the war in Ukraine began in 2022, LVMH closed its Louis Vuitton, Dior and Bulgari boutiques in Russia a few days before Europe imposed export sanctions on luxury goods. The conglomerate, controlled by French billionaire Bernard Arnault, also sold its Sephora stores for a premium, although their mass market products were not subject to sanctions. However, one of these enterprises in Russia continues to operate: the Grand Hotel Europe in St. Petersburg, which follows the route of luxury hotels and Belmond trains, which enter the LVMH warehouse. The legendary hotel itself is not subject to sanctions and operates legally. However, as revealed by Reuters, it continues to withhold payments for services to corporate clients subject to expanded sanctions in Europe and Great Britain, including the great Russian transport, energy and media companies, as well as banks and military contractors.
LVMH temporarily closes its 124 stores in Russia. Suspend all operations in Russia. LVMH said in January 2025 that it was “impossible” to control the final destination of products sold by third-party distributors after a report said the French luxury group’s champagne reached Russia even after it had ceased business there. The Russian division of Louis Vuitton Moёt Hennessy has extended its lease for its office in the Citydel business center on Zemlyanoy Val Street in central Moscow.