Loss of operational control under Decree 302

Russian President Vladimir Putin signed Decree No. 302 on Monday, placing the Russian business of German wholesale retailer Metro AG under temporary administration. The decree transfers all operational assets, including 100% of the share capital of JSC Metro Warehouse Noginsk, to UK Torg Rus, a management company incorporated in Moscow in early September with a charter capital of 10,000 rubles. UK Torg Rus is owned and led by Johannes Maria Tholey, who has served as the chief executive of Metro Cash and Carry Russia since spring 2023. Metro AG confirmed the measure, stating that while formal legal ownership of the subsidiary remains with the German parent company, it has lost all operational control over business activities in Russia. Representatives of the Russian subsidiary announced that local retail locations will continue routine operations and fulfill commitments to customers.

Footprint and financial exposure in Russia

Metro entered the Russian wholesale market in 2001 and retained its presence after the February 2022 invasion of Ukraine, citing obligations to local staff, food supply security, and shareholder value. The Russian division operates 91 wholesale shopping centers across 51 regions and employs approximately 9,000 workers. In the previous financial year, Metro Russia generated 2.6 billion euros in revenue, representing an increase of 6.7% and accounting for roughly 10% of total group turnover. The subsidiary contributed 135 million euros to overall group earnings. German corporate leadership had previously reduced structural links to the Russian entity, though Metro stated on Monday that it is currently evaluating the broader legal and financial consequences of the Kremlin decree.

Acceleration of Western asset seizures

The transfer of Metro assets follows a series of similar administrative interventions directed at Western corporate holdings from countries designated as unfriendly by Moscow. On 18 September, the Russian government placed the local assets of Swiss food manufacturer Nestlé, French supermarket group Auchan, and home improvement company Lehmana Pro under the temporary administration of L.E.V. Management, a firm directed by former Interior Ministry general Andrey Krayushkin. On 21 September, the Kremlin applied identical external management measures to the Russian subsidiary of US packaging company Aptar. Kremlin spokesman Dmitry Peskov previously stated that Western military assistance to Kyiv involves these home countries in the conflict and contributes to strikes against Russian civil and economic infrastructure. Similar decrees previously led to local takeovers of Russian subsidiaries owned by French dairy group Danone and Danish brewer Carlsberg.

Diplomatic tensions between Berlin and Moscow

The intervention coincides with escalating friction between Germany and Russia over military support for Ukraine and recent espionage disputes. German authorities recently attributed an attempted drone strike at Leipzig airport to Russian intelligence, subsequently closing a Russian consulate in Bonn and a cultural center in Berlin. Russia retaliated by ordering the closure of the German consulate in Saint Petersburg. On Saturday, Russian Foreign Minister Sergei Lavrov met German Foreign Minister Johann Wadephul on the sidelines of the United Nations General Assembly in New York, describing the exchange as unproductive. Stefan Meister, an expert at the German Council on Foreign Relations, stated that the asset transfers represent calculated economic pressure on Berlin.

“The Russians are raising the pressure on Germany in their hybrid war. It's being made clear that the Germans could lose even more companies and assets in Russia, in order to raise pressure on the German government from the German business community.”