Metro AG Loses Control of Russian Subsidiary After Putin Decree

Metro AG, the German retailer, has lost operational control of its Russian subsidiary after a decree by President Vladimir Putin placed the business under temporary administration. The move, signed this week, escalates the risks for foreign companies in Russia as geopolitical tensions sharpen following the invasion of Ukraine.

Under the decree, UK Torg RUS will manage Metro’s Russian operations, though the German parent company retains formal ownership. Metro entered the Russian market in 2001 and currently operates 91 wholesale stores across the country, employing approximately 9,000 people. The business remains significant for the group, with Russian sales rising 10.3% to €2.14 billion in the first nine months of the 2025/26 financial year—accounting for nearly 8.7% of Metro’s total sales.

The Kremlin’s latest move follows a pattern of government interventions targeting foreign businesses since the start of the war in Ukraine. Companies such as Nestlé and Auchan have faced similar measures, reflecting what analysts see as a concerted effort to assert greater Russian control over assets seen as strategically important or exposed to Western sanctions.

The loss of operational control raises immediate questions about the stability of Metro’s Russian revenues and casts uncertainty over the fate of its assets. Analysts warn that the precedent could accelerate the withdrawal or forced divestment of other German and European businesses, potentially reshaping the investment landscape in Russia.

For European companies, the developments add to the operational and financial risks of maintaining a presence in the Russian market. The German business community may increase pressure on Berlin to respond, particularly if further assets are placed under state control or if revenue losses mount.

Nevertheless, the situation may present opportunities for local management or new ownership structures to stabilise operations within Russia, even as foreign parent companies reassess their strategies in response to heightened geopolitical risk. For Metro AG, the next steps will likely involve evaluating options to limit losses and adjust its broader international strategy, as the consequences of the Kremlin’s decree become clearer in the coming months.