Russia takes over Metro AG’s assets amid deteriorating relations with Germany / Moscow places them under temporary administration

Russia has placed the local assets of German retailer Metro AG under temporary administration through a presidential decree published on Monday, amid deteriorating relations between Moscow and Berlin in the context of the war in Ukraine.

The assets were transferred to the Russian company UK Torg RUS, established on September 8 and wholly owned by Johannes Tolay, the general director of Metro’s Russian subsidiary. The decree does not specify the reason for the measure.

Metro AG announced that it no longer has operational control over its business in Russia and is assessing the implications of the decision. The company expanded into the Russian market in 2001, operates 91 stores and has approximately 9,000 employees. The local subsidiary said it would continue operating and meeting its obligations to customers.

Moscow’s decision comes after a meeting in New York between the foreign ministers of Russia and Germany, Sergey Lavrov and Johann Wadephul, the first since the beginning of Russia’s invasion of Ukraine.

Metro is one of the few major Western companies to have remained in Russia after sanctions were imposed. In recent weeks, the Kremlin has also placed the Russian assets of Nestle, Auchan and Leroy Merlin under temporary administration, transferring them to L.E.V. Management.