Russian retailers ask banks for €1.4 billion
Ten Russian food retail companies have asked state banks for a total of €1.4 billion in loans to help survive the global financial crisis. The companies include X5 Retail Group, Magnit, Dixy and Seventh Continent, as well as smaller rivals Lenta, Kopeika, O'key, Holiday, Mosmart and Victoria.
X5, Russia's largest food retailer by revenue, said it would ask for a maximum of €550 million from the state banks, while Magnit, which has more stores than any other food retail chain in Russia, said it had secured funding facilities totalling nearly €158 million from Sberbank.
Earlier this month the Russian government pledged support to the industry, entrusting state-controlled banks Sberbank and VTB with giving loans to retailers which are struggling to refinance their short-term debts.
The companies have not commented publicly on any loan requests.
