Putin Places Metro AG's Russian Assets Under Temporary Administration

Russian President Vladimir Putin has ordered that the Russian assets of German retailer Metro AG be placed under temporary administration, according to an order published Monday on the government website. The directive did not provide a reason for the move.

The step comes amid heightened tensions between Germany and Russia over the war in Ukraine. It follows similar actions taken against the Russian businesses of global food company Nestle and French retailer Auchan, under a 2023 decree targeting businesses associated with "unfriendly countries."

Tensions have escalated in recent months. Germany concluded that Russia was responsible for an attempted drone attack at Leipzig airport and subsequently closed a Russian consulate in Bonn and a Russian cultural center in Berlin. In response, Russia closed the German consulate in St. Petersburg. Moscow has denied the allegations.

On the sidelines of the U.N. General Assembly on Saturday, Russian Foreign Minister Sergei Lavrov met with his German counterpart Johann Wadephul. Lavrov was dismissive afterward, saying that Wadephul "simply reiterated his official public position condemning Russia... you can judge for yourself whether that counts as dialogue or not."

The temporary administration mechanism has previously led to local owners taking over the Russian businesses of French dairy concern Danone and Danish brewer Carlsberg at knockdown prices.