German retailer Metro loses control of Russian business after Putin decree
Russian President Vladimir Putin has ordered that the assets of German retailer Metro AG be placed under temporary administration. The move comes amid escalating tensions between Germany and Russia over the Ukraine war.
German retailer Metro AG faces operational control loss in Russia following President Putin's decree on Monday. The decree temporarily administers Metro Cash and Carry's Russian operations to UK Torg RUS. The order, posted on a Russian government website, lacked a specific reason for the action. This comes after similar measures against Nestlé and Auchan's Russian businesses.
Metro, despite formally owning the subsidiary, no longer controls its operations as the company examines the decree's effects. It had reduced ties to Russia since 2022 due to the Ukraine invasion. Metro entered Russia in 2001 with 91 stores and 9,000 employees. The move occurs amid escalating tensions between Germany and Russia, following Russia's denial of an attempted drone attack at Leipzig airport.
Russia closed a German consulate in St. Petersburg and dismissed Germany's allegations. Russian Foreign Minister Sergey Lavrov met with German counterpart Johann Wadephul at the UN General Assembly but dismissed the meeting, stating it did not signal a change in Germany's stance on Ukraine. Stefan Meister, a Russia expert, believes Russia is pressuring Germany to lose more companies and assets in retaliation, as Germany is Ukraine's most significant single supporter.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
