Carrefour to invest in Russia

Carrefour, seeking to accelerate growth in high-potential markets, is building two stores in Russia--one in Moscow and one in Krasnodar--which it hopes to open late this year or early next year, and has plans for least another five openings in 2009.

Under the investment project announced Monday, the local administration will "provide support for Carrefour business development" by finding suitable sites for lease or purchase, allowing Carrefour to open several hypermarkets and other retail outlets in the region.

Carrefour is the world's second-biggest retailer after U.S.-based Wal-Mart Stores Inc., which has also been considering expanding into Russia.

Carrefour's move comes amid tense relations between Russia and the U.S. and Europe over the war in Georgia and wider fears about the revival of a political risk premium.

Russian stock markets have been falling since May after a high-profile shareholder struggle at Anglo-Russian oil venture TNK-BP raised concerns about the government's involvement in the dispute as it was subjected to a barrage of probes by government agencies.

Last week Russian stocks suffered heavy losses during a week of turmoil on world financial markets and the banking system ran alarmingly short of cash, prompting the government to grant a wave of emergency loans.