President Vladimir Putin has placed the Russian assets of German retailer Metro AG under temporary administration. This action follows ongoing tensions between Germany and Russia related to the war in Ukraine. The order, published Monday on the government website, did not specify a reason. Similar measures have been taken against the Russian operations of Nestle and Auchan under a 2023 decree targeting businesses from so-called “unfriendly countries.”
In a press release issued today, the German company wrote that “Even though the ownership of METRO Russia formally remains with METRO AG, the decree means that METRO itself no longer has operational control. The Russian state has transferred operational control to “UK Torg RUS”, a company owned by the CEO of METRO Russia, Johannes Tholey.”
Metro AG highlights in its press release that “Since the beginning of Russia’s war against Ukraine in February 2022, METRO has taken a variety of measures to reduce the links between the Russian business and METRO AG. Further effects of the decree on METRO AG are currently being analysed. METRO expanded into the Russian market in 2001 and operates 91 wholesale stores in Russia. Around 9,000 employees work for METRO in Russia.”
Recently, Germany attributed an attempted drone attack at Leipzig airport to Russia, leading to the closure of a Russian consulate in Bonn and a cultural centre in Berlin. In response, Russia closed the German consulate in St. Petersburg and denied the allegations. Russian Foreign Minister Sergei Lavrov met with his German counterpart Johann Wadephul at the UN General Assembly, later stating that Wadephul “simply reiterated his official public position condemning Russia… you can judge for yourself whether that counts as dialogue or not.” Temporary administration has previously led local owners to acquire Danone and Carlsberg businesses at significantly reduced prices.
This article used information from The Associated Press.
