Overview
- A presidential decree placed Metro Cash & Carry’s Russian business under temporary management by UK Torg RUS, and Metro says it still formally owns the unit but no longer controls its operations.
- Metro reported substantial exposure in Russia, with about €2.6 billion in sales in its 2024/25 year and €152 million in cash and equivalents in its Russian group companies.
- This action follows recent Kremlin transfers of Nestlé, Auchan and the former Leroy Merlin units to intermediary managers, reflecting a pattern of targeting firms from countries backing Ukraine.
- Russian rules now require presidential approval for major exits and often route control to low-activity, opaque managers, forcing companies to weigh large write-downs and limited legal options.
- The change threatens jobs, local supply chains and store operations in Russia and raises the risk that assets could be sold at steep discounts to Kremlin-linked buyers, a development to monitor next.