German wholesaler Metro AG has lost operational control of its Russian business after President Vladimir Putin signed a decree placing the subsidiary under temporary administration. The order, published on a Russian government website on Monday, transfers management of Metro Cash and Carry's Russian operations to UK Torg RUS, a company owned by Johannes Tholey, who currently serves as CEO of Metro Russia.
Metro said it remains the formal owner of its Russian subsidiary but no longer exercises operational control. The company is analysing the decree's implications, which did not specify a reason for the action. The move follows a pattern established under a 2023 Russian decree targeting businesses associated with "unfriendly countries," which has already affected French food company Danone, Danish brewer Carlsberg, and Swiss food giant Nestlé.
Russia remains a significant market
Metro entered the Russian market in 2001 and operates 91 wholesale stores there, employing around 9,000 people. Despite efforts to reduce its exposure since Russia's full-scale invasion of Ukraine in 2022, Russia still accounts for a substantial share of Metro's revenue. In the first nine months of the 2025/26 financial year, sales in Russia rose by 10.3% in euro terms to €2.14 billion, representing roughly 8.7% of the group's total turnover.
The seizure is the latest in a series of Kremlin moves that have forced Western companies to sell their Russian assets at steep discounts, pay exit taxes, and obtain government approval. In some cases, local owners have taken over businesses at knockdown prices, as seen with Danone and Carlsberg.
The decree comes amid escalating tensions between Berlin and Moscow. Germany has accused Russia of being behind an attempted drone attack at Leipzig airport and has responded by closing a Russian consulate in Bonn and a Russian cultural centre in Berlin. Moscow retaliated by closing the German consulate in St Petersburg and denying the allegations.
On Saturday, Russian Foreign Minister Sergey Lavrov met his German counterpart Johann Wadephul on the sidelines of the UN General Assembly. Lavrov was dismissive afterwards, saying Wadephul "simply reiterated his official public position condemning Russia... you can judge for yourself whether that counts as dialogue or not." Wadephul said the meeting was necessary to raise Germany's security concerns directly, but he sensed no seriousness from the Russian side and stressed that the talks did not signal any change in Germany's support for Ukraine.
Stefan Meister, a Russia expert at the German Council on Foreign Relations, said the move is part of Moscow's hybrid war against Berlin. "The Russians are raising the pressure on Germany in their hybrid war," he told European Pulse. "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."
Meister added that Russia views Germany as "a key adversary since it is Ukraine's most important single supporter." This assessment aligns with recent developments, including Lavrov's rebuff of Berlin's plea to de-escalate and the ongoing EU ministers' efforts to craft a joint response to Russian hybrid sabotage.
Many Western businesses have ceased operations in Russia and written off their investments since 2022. Those that remain face increasingly burdensome conditions, including mandatory discounts, exit taxes, and government oversight. The Kremlin's latest move against Metro signals that even companies that have tried to stay are not immune to pressure.
For Germany, the seizure is a direct economic blow. Metro's Russian business has been a profitable part of the group, and its loss could affect the company's financial outlook. The broader implications extend beyond Metro, as other German firms with Russian exposure may now reconsider their positions.
The diplomatic rift between Berlin and Moscow shows no signs of easing. Germany remains Ukraine's largest single donor, and Russia continues to target Ukrainian cities with drone and missile strikes, as seen in recent attacks on Kyiv and Kharkiv. The Kremlin's decision to seize Metro's assets is likely to harden Berlin's stance and further strain relations between the two countries.
