Die Zeit1 hour agoBusiness2 min readGermany

Putin places Metro's Russian business under receivership

Quick Look

Russian President Vladimir Putin has placed food wholesaler Metro's Russian business under receivership.
The Russian management company Torg RUS is temporarily taking over 100 percent of Metro's assets in Russia.
Metro AG emphasizes that formal ownership remains with it, but it no longer has operational control.

AI-generated summary

Why It Matters

Metro has been operating in the Russian market since 2001 and operates 91 wholesale stores with approximately 9,000 employees. Despite the war in Ukraine, Metro AG decided to stay in Russia in order to maintain business relationships. The Kremlin has previously taken similar measures against Nestlé and Auchan, which it justified as a response to those countries' military support for Kiev.

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Russian President Vladimir Putin has placed food wholesaler Metro's Russian business under receivership. The Kremlin in Moscow published a corresponding decree. Accordingly, the Russian management company Torg RUS temporarily manages 100 percent of Metro's assets in Russia. According to Metro AG, Torg RUS is a company owned by the CEO of Metro Russia, Johannes Tholey.

Metro AG stated that it no longer had operational control over Metro Russia. However, ownership of Metro Russia formally remains with Metro AG. The company also spoke of a “temporary receivership”.

This month, Putin had already placed the food manufacturer Nestlé and the French department store chain Auchan, among others, under external administration. The Kremlin had explained about the previous decisions that these were companies from so-called unfriendly countries whose leaders were involved in the Ukraine war through their aid to Kiev. Military aid from these countries is being actively used by Kiev to strike against the civil-economic infrastructure in Russia, Kremlin spokesman Dmitry Peskov said.

Metro in the Russian market since 2001

Ukraine is also using drone attacks in the Russian hinterland to defend itself against the war of aggression that Putin started more than four and a half years ago. Logistics centers of the largest Russian online mail order companies Wildberries and Ozon, among others, were recently destroyed or damaged.

According to its own information, Metro entered the Russian market in 2001. There are 91 wholesale stores in Russia. Around 9,000 employees worked for Metro in Russia.

Metro AG remained in Russia even after the start of the war

Metro AG in Germany decided to stay in Russia after the start of the war of aggression ordered by Putin. “It was and is a difficult weighing process for us too,” the company announced in 2023.

On Monday, Metro said it had taken various measures to reduce ties between Metro Russia and Metro AG since the start of Russia's war against Ukraine in February 2022. Further effects of the decree on the AG are currently being analyzed.

Russia had threatened to take countermeasures in the wake of the sanctions imposed by the West, including the confiscation of state assets in the EU.

What to Watch

AI outlook — possibilities, not facts

Metro AG will analyze the financial impact of the receivership in the coming quarters and possibly make an impairment loss.
Likely · Within months
The Kremlin could take similar measures against other German companies in Russia if they are perceived as supporting Ukraine.
Possible · Within months

Open Questions

How long will the receivership by Torg RUS last?
What financial losses does Metro AG expect as a result of the loss of operational control?
Is Metro AG planning to take legal action against the measure?
How will the 9,000 employees in Russia be affected by the receivership?