One of Russia's richest businessmen, Sergey Pugachev, has reportedly splashed out more than one billion euros on a luxury French retail company. The purchase of Hediard was made through Pugachev's Luxembourg-based firm.

Hediard was founded in Paris 1854, placing it among Europe's oldest shops. It also one of the continent's leading retailers in luxury-class items. The company has 320 outlets, including cafes, shops and restaurants, in more than 30 countries, including Russia. It also has around 6,000 name-brand products in its porfolio.

Hediard's president Dominique Richard told Russia Today the legendary chain will stick to its traditions despite its change in ownership.

“First of all, Hediard is a French company. Secondly, the financial holding of Hediard has been bought by a European company based in Luxembourg. And if the owner of this company is Russian, it is very good for everybody. But it is very important to know that Hediard will continue to produce in France and be based in France with all its know-how concentrated in France,” he said.