Putin Orders State Takeover of Metro’s Russian Subsidiary

Key points

• Putin’s executive order transfers Metro Russia’s shares to Torg Rus, a management company registered in September 2026.
• Johannes Tholey, the current CEO of Metro Russia, is also listed as the CEO of Torg Rus.
• Metro Russia issued a statement confirming it continues to operate as usual but did not directly comment on the presidential order.
• This seizure follows the Kremlin’s recent takeover of Russian subsidiaries of Auchan, Nestlé, and Lemana PRO.
• The action occurs after German-Russian diplomatic meetings and Germany’s closure of Russian cultural centers in Berlin.

Background

In late September 2026, the Kremlin seized the Russian assets of Nestlé, Auchan, and Lemana PRO, transferring them to state-linked management firms. This followed a 2023 decree granting the state authority to place foreign assets under temporary management in response to hostile actions by unfriendly governments. The current seizure of Metro’s assets continues this trend of nationalizing Western retail operations in Russia.

Why it matters

The seizure of Metro’s Russian subsidiary signals the Kremlin’s continued expansion of state control over Western businesses in Russia. It highlights the escalating economic and diplomatic friction between Moscow and Berlin, particularly following Germany’s recent closure of Russian cultural institutions and accusations regarding drone attacks. For Western corporations, this move reinforces the risks of operating in Russia under the current legal framework, which allows the state to seize assets deemed to belong to unfriendly nations.

What to watch

Observers will watch for any operational disruptions at Metro Russia stores and potential legal challenges from Metro AG. The company may assess options for exiting the Russian market entirely or negotiating with the state management firm. Further diplomatic exchanges between Germany and Russia could also influence the trajectory of these asset seizures.