Farm Frites forced to delay construction of Russian factory

Farm Frites forced to delay construction of Russian factory

European sanctions against Russia following the Ukrainian airplane disaster have hit French fry manufacturer Farm Frites as well as it cannot get a loan approved for the construction of a new Russian factory.

"We are not looking for a new investor"

The European Union has issued new economic sanctions against Russia after flight MH17 was shut down by Ukrainian rebels, for which it partially blames Russia. Russia denies any wrongdoing in the disaster which cost 298 people their lives (among them 193 Dutch people). The disrespectful behaviour of the rebels in regards to the victims and European observers has also angered quite a few people.

 

The first economic victim is Farm Frites, which had hoped to get a loan for a new Russian factory, destined to open in 2016. This particular factory would become a supplier for every Russian McDonald's, but the European Union has told every bank to respect a Russian boycott. This means that there are no funds available to do anything in Russia, which in turn means that Farm Frites will have to delay its plans.

 

Farm Frites will not be looking to find a new investor as the situation in the region remains very unstable. "Right now, we are waiting to see how the situation develops as new from Russia changes every day", advisor Simon Quest told Volkskrant.

Questions or comments? Please feel free to contact the editors


Amazon prepares own sports clothing collection

17/10/2017

Amazon is allegedly planning its own collections of sports clothing, having contacted manufacturers working for chains like Gap and Uniqlo. These are currently only producing small numbers of clothing for testing purposes.

H&M invests in old clothing recycling

12/10/2017

Swedish H&M has acquired a minority stake in Re:newcell, which targets the recycling of old clothing in order to ensure a more sustainable fashion industry.

Uniqlo's profit more than doubled

12/10/2017

In the past fiscal year, Japanese Uniqlo more than doubled its profit on the back of a 4 % turnover increase. The fashion chain forecasts international sales to soon outgrow those of Japan.

Gucci also halts fur production

12/10/2017

Fashion brand Gucci will no longer use fur in its clothing and accessories, as CEO Marco Bizzarri promised during his Kering Award for sustainable fashion acceptance speech for the London College of Fashion.

Fashion platform About You launches in the Netherlands and Belgium

11/10/2017

German fashion web shop About You, the second largest online European fashion retailer, officially launched in Belgium and the Netherlands following an unofficial launch in the Netherlands some time ago.

Luxury group LVMH exceeds third quarter expectations

10/10/2017

French luxury group LVMH has surpassed turnover expectations in the first three months of its fiscal year. Louis Vuitton and Christian Dior’s parent company managed a 12 % like-for-like turnover growth, to 30.1 billion euro.

Back to top