Key facts
- Russian President Vladimir Putin signed a decree on September 28 placing Metro AG's Russian subsidiary under Kremlin control.
- The Russian division has been transferred to the temporary management of UK Torg RUS.
- UK Torg RUS is wholly owned by Metro Russia CEO Johannes Tolay.
- Metro AG stated it no longer has operational control of its Russian business.
- Metro AG first entered the Russian market in 2001 and operated 91 wholesale stores in the country.
- Moscow has previously seized Russian subsidiaries of Western companies amid the war in Ukraine.
Russian President Vladimir Putin signed a decree on September 28 placing the Russian subsidiary of German wholesale food retailer Metro AG under Kremlin control. The mandate transfers Metro AG’s Russian division to the "temporary management" of UK Torg RUS, a company created on September 8. Corporate filings reveal UK Torg RUS is wholly owned by Metro Russia CEO Johannes Tolay.
"Even though the ownership of Metro Russia formally remains with Metro AG, the decree means that Metro itself no longer has operational control," the company said in a press release. Metro AG, one of the world’s largest retailers specializing in food wholesale and distribution to restaurants and hotels, first entered the Russian market in 2001 and operated 91 wholesale stores, employing around 9,000 people in the country.
"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," the company said. "Further effects of the decree on Metro AG are currently being analyzed."
The seizure follows heightened tensions between Berlin and Moscow, including an alleged thwarted Russian drone attack at Germany's Leipzig airport over the summer. It also comes after a meeting between German Foreign Minister Johann Wadephul and his Russian counterpart, Sergey Lavrov, on September 26, where Germany called on Russia to end its war and engage in negotiations.
Moscow has seized Russian subsidiaries of Western companies throughout the war. On September 17, Putin signed a decree confiscating assets of companies including Nestle and Auchan. Other companies placed under management include Bati Logistics, FM Logistics, and Le Monlid LLC.