Magnit, one of Russia’s largest grocery retailers, is preparing to expand into Russian-occupied territories of Ukraine, the Kommersant business daily reported Tuesday, potentially marking the entry of a major federal retailer into the regions.
Magnit has already begun supplying some of its products to local chain Tvoy Magazin, which operates stores in Donetsk, Mariupol and Luhansk, Kommersant cited one industry source as saying.
A second source said the assortment sold by Tvoy Magazin largely mirrors the product range found in Magnit stores in central and southern Russia, suggesting the cooperation could serve as a test run ahead of opening Magnit-branded outlets.
Magnit did not deny the information but told Kommersant that its expansion plans for 2026 are primarily focused on eastern Siberia and Russia’s Far East.
Federal authorities are supporting the development of modern retail infrastructure in the Russian-occupied parts of the Donetsk, Luhansk, Zaporizhzhia and Kherson regions, Alexander Zaitsev, CEO of investment firm Atomic Capital, told Kommersant.
However, a large-scale move by major federal retailers into the occupied territories is unlikely in 2026, said Mikhail Burmistrov, CEO of consultancy Infoline-Analytics.
He said persistently high borrowing costs and weakening consumer demand are prompting retailers to prioritize efficiency and expand only in regions where logistics networks and distribution centers are already in place.
Russia’s leading food retailers are currently focusing on eastern Siberia and the Far East, where consumer demand and household incomes remain relatively strong, Kommersant reported.
Magnit plans to open its first stores in the Magadan region and the republic of Sakha (Yakutia) in 2026, according to the newspaper.
At the same time, slowing consumer activity has led to a sharp decline in grocery store openings nationwide.
Food retailers opened around 5,300 outlets between January and September 2025, down about 30% year on year, Kommersant said.
Read this story in Russian at The Moscow Times' Russian service.
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