Russia has placed the local unit of German retailer Metro under temporary “forced” administration, effective immediately.
The order was issued through a decree from Russian President Vladimir Putin.
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Metro no longer has operational control over Metro Russia.
Metro retains formal ownership, but the Russian state has transferred operational control to UK Torg RUS, a company owned by Metro Russia chief executive Johannes Tholey.
Metro said it is assessing the decision’s wider implications for the company.
In its statement, the company said: “ 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 entered the Russian market in 2001. It runs 91 wholesale stores in the country and has 9,000 employees there.
The decision follows comparable steps against the Russian operations of food and beverage company Nestlé and French retailer Auchan.
A decree signed by the President on 17 September added stakes in Nestlé Russia and Nestlé Kuban to the list of assets under temporary administration.
Held by Société des Produits Nestlé and Nestlé Deutschland, the interests will be run by Russian joint-stock company LEV Management.
The same decree also placed interests in Auchan under temporary administration.
In 2023, Russia seized the local assets of French food and beverage corporation Danone.
The company sold them the following year and recorded a €1.2bn ($1.38bn) loss. Carlsberg’s stake in Baltika Breweries was also seized in 2023.
In its most recent quarterly update, Metro reported Russia sales of €2.14bn for the first nine months of FY25/26, up 10.3% as reported and 1.0% in local currency.
Currency effects lifted the reported figure.
In the third quarter of FY25/26, sales in Russia came to €711m, rising 7.2% as reported and 1.1% in local currency.
