Russia places Metro business under state administration

According to a presidential decree issued by President Vladimir Putin on Monday, the assets of the retail group Metro in Russia have been placed under temporary state administration. This measure affects the 91 branches that Metro operates in the country, impacting approximately 9,000 employees.

Metro remains the formal owner of its Russia business but loses operational control over its markets. This means that the German management can no longer make decisions regarding business activities in Russia, which is relevant for suppliers and other business partners.

With this decision, Russia marks another milestone in its control over foreign companies, which have recently come under scrutiny due to the Ukraine war and escalating political tensions between Moscow and Western countries. Metro is not the first company to experience such state administration; others, including Auchan, have been affected before.

According to Tagesschau.de, Metro AG, which continued its business operations in Russia following the onset of the Ukraine war, is under significant pressure. To continue meeting the needs of its customers and employees, the company had maintained its presence despite the challenging geopolitical situation.

Additionally, Metro has announced that the previous head of its Russia operations is no longer part of the company. This appears to be a step towards distancing itself from the current situation in Russia, as the company reevaluates its processes within the country.

According to Le Figaro, the Russian administrative authority "UK Torg Rus" has been tasked with managing the assets. It remains to be seen what impact this measure will have on Metro's business activities in Russia and how the company will respond to the changed conditions.