Magnit, one of the largest grocery chains in Russia, is reportedly preparing to extend its operations into the territories of Ukraine currently controlled by Russia, according to a report from the business daily Kommersant. This could signify the entrance of a prominent national retailer into these regions.
The company has initiated the supply of certain products to a local retailer, Tvoy Magazin, which has stores in Donetsk, Mariupol, and Luhansk, as mentioned by an industry insider to Kommersant.
Another source noted that the range of products available at Tvoy Magazin closely resembles what is offered at Magnit locations in central and southern Russia, indicating that this collaboration might serve as a trial for the future establishment of Magnit-branded stores.
While Magnit did not refute the claims, it conveyed to Kommersant that its plans for expansion are primarily aimed at eastern Siberia and the Far East by 2026.
According to Alexander Zaitsev, CEO of the investment firm Atomic Capital, federal authorities are backing the growth of modern retail infrastructure in the Russian-occupied areas of Donetsk, Luhansk, Zaporizhzhia, and Kherson.
Nonetheless, Mikhail Burmistrov, CEO of consultancy Infoline-Analytics, expressed skepticism about a significant influx of major federal retailers into these occupied territories in 2026. He cited persistently high borrowing rates and declining consumer demand as factors compelling retailers to focus on operational efficiency and to expand only in regions with established logistics and distribution systems.
Currently, Russia’s top food retailers are targeting eastern Siberia and the Far East, where consumer demand and household incomes appear to be relatively resilient, according to Kommersant.
Magnit intends to launch its first stores in the Magadan region and Yakutia (the republic of Sakha) in 2026, as reported by the newspaper.
At the same time, a slowdown in consumer activity has led to a significant drop in the number of grocery stores opening across the country. From January to September 2025, food retailers opened approximately 5,300 new outlets, reflecting a decline of around 30% compared to the previous year, reported Kommersant.
You can read this story in Russian at The Moscow Times’ Russian service.
