Western retailers are avoiding investing in Russia in favour of other more attractive markets, according to the boss of one of the country's largest supermarket chains.

Alexander Kosyanenko, the head of 64-store Perekriostok, said retailers are being wooed by the potential of China and put off by the apparent instability of Russia. However, he said the development and consolidation of the Russian market continues. Larger chains are eager to gain share by acquiring smaller regional businesses.

Perekriostok, with sales equivalent to US$450 million (£248 million), estimates the Russian grocery market this year will be worth US$37.3 billion (£20.57 billion).

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