Moscow (AFP) – Russian authorities on Monday seized the assets of German wholesaler and food retailer Metro — the latest in a series of business takeovers linked to countries that back Ukraine. A decree signed by President Vladimir Putin announced that the Russian operations of Metro Cash and Carry had been put under the “temporary management” of a company called UK Torg RUS.
This comes after Moscow earlier this month seized the businesses and assets of Swiss food giant Nestle, as well as French retailer Auchan and the former Leroy Merlin DIY chain. In a statement, Metro said it still formally owned the company but no longer had “operational control over its Russian subsidiary” and was analysing what the decision meant for the company. “Further effects of the decree on METRO AG are currently being analyzed,” it said.
In its latest yearly report, the company said its sales in Russia amounted to 2.6 billion euros ($2.9 billion) in the 2024/2025 financial year. The cash and cash equivalents of Metro’s Russian group companies amounted to 152 million euros ($172 million) as of June 30, the company said in its latest quarterly report.
Most Western companies quickly sold their Russian operations and holdings after the Kremlin ordered troops into Ukraine, or at least isolated them, as sanctions have made trading in most goods difficult. Others remained, citing concerns for their employees or citizens’ well-being, but often sharply scaling back their operations. Russia has since made it difficult for firms to leave, requiring presidential authorization for deals, or seizing the assets outright.
© 2024 AFP
