Russia Seizes Control of Metro Assets Amid Escalating Tensions with Germany
German retail giant Metro has been placed under temporary Russian state management, joining a growing list of Western firms whose assets have been seized by the Kremlin amid escalating diplomatic tensions over Ukraine.
German retail giant Metro has joined a growing list of Western companies whose assets in Russia have been targeted by the Kremlin under a 2023 decree. The unofficial pretext for the move is the support provided by the companies' home nations to Ukraine. Metro follows similar seizures affecting assets belonging to global food giant Nestle, French retail chains Auchan and Lemana Pro, and US-based packaging manufacturer Aptar.
The "temporary management" mechanism outlined in the decree functions as a legal loophole allowing the Kremlin to appoint interim managers. These figures typically transfer the companies to local investors close to the Kremlin or facilitate rapid sales at steep discounts. The takeover of Metro's assets comes amid escalating tensions between Germany and Russia over the ongoing war in Ukraine. The decree, signed by Russian President Vladimir Putin to place the company's operations under Russian oversight, does not explicitly state a justification, though it relies on the 2023 legislation targeting businesses connected to "unfriendly countries."
Impact on Foreign Business
Similar measures previously resulted in local owners taking over the Russian operations of French dairy giant Danone and Danish brewer Carlsberg. Danone later reported a total loss of roughly 1.2 billion euros following the loss of control over its Russian assets and its exit from the market. In the case of Carlsberg, Russia seized Baltika, the country's largest brewer, with shares eventually transferred to local managers.
"The Russians are increasing pressure on Germany as part of their hybrid war," noted Stefan Meister, a Russia expert at the German Council on Foreign Relations, in an interview with Euronews. "Russia is making it clear that Germans could lose more companies and assets in Russia to increase pressure on the German government from the German business community."
Despite scaling back its operations since the 2022 invasion of Ukraine, Russia remains a significant market for Metro, which entered the country in 2001 and operates 91 wholesale stores employing about 9,000 workers. During the first nine months of the 2025-2026 fiscal year, Metro's sales in Russia climbed 10.3% to 2.14 billion euros, accounting for approximately 8.7% of the company's total sales.
