A decree issued by President Vladimir Putin on Monday has resulted in the temporary administration of the German retailer Metro AG’s local assets in Russia. This decision comes amid escalating tensions between Moscow and Berlin related to the ongoing war in Ukraine and alleged sabotage actions by Russia, according to Reuters.
While the decree did not specify a reason for this transfer of control, it was issued following a rare meeting over the weekend between Russian Foreign Minister Sergei Lavrov and his German counterpart Johann Wadephul.
The meeting took place during the UN General Assembly in New York, where the two ministers discussed the situation in Ukraine. Lavrov expressed frustration at not receiving any new information from Wadephul, whose government strongly supports Ukraine.
Earlier this month, the German government concluded that Russia was behind a drone attack attempt on the Leipzig/Halle airport. In response, Berlin has implemented several measures, including closing a Russian consulate and a cultural center in the city. Moscow denied these accusations, claiming they were “completely fabricated.”
In a statement on Monday, Metro’s Russian subsidiary did not directly address the decree signed by Putin but confirmed that it is operating normally and fulfilling all obligations to customers in its stores and online.
Action Against Metro Follows Recent Measures Against Auchan
Just weeks prior, the Kremlin took similar steps against the French retailer Auchan and Swiss food giant Nestlé, transferring control of their Russian assets to a Russian entity. The Kremlin cited hostile actions from “unfriendly” countries as a factor in its decision.
The decree specified that the Russian assets of both companies would be placed under the temporary administration of a company called L.E.V. Management. According to Russian registry data, this company was registered in Moscow in 2024 with a nominal capital of only 15,000 rubles (approximately $177) and has just one employee.
Before the decree, L.E.V. Management was largely unknown to the public, as reported by Bloomberg. Since the beginning of the war in Ukraine in 2022, Russia has tightened control over foreign-owned assets. A decree signed by Putin in 2023 grants Moscow the authority to place assets from countries deemed “hostile” under temporary administration.
This mechanism has previously been employed to take control of the Russian subsidiaries of companies such as Danone and Carlsberg.
