Russia Places Metro AG's Local Assets Under Temporary Administration

Russia has placed the Russian assets of German retailer Metro AG under temporary administration, according to a presidential decree made public on Monday. The move comes amid heightened tensions between Moscow and Berlin over Ukraine.

Under the decree, control of the assets has been transferred to UK Torg RUS, a company established on September 8. Russian corporate records show the firm is wholly owned by Johannes Tolay, who serves as chief executive of Metro's Russian operations.

The decree did not state a reason for the transfer. It followed a rare weekend meeting between Russian Foreign Minister Sergei Lavrov and his German counterpart, Johann Wadephul, on the sidelines of the UN General Assembly in New York, where Ukraine was discussed. Lavrov said he had learned nothing new from Wadephul, whose country is a strong supporter of Ukraine.

Earlier this month, Germany said it had concluded that Russia was responsible for an attempted drone attack at Leipzig/Halle Airport and announced a series of measures in response, including the closure of a consulate and a Russian cultural centre in Berlin. Moscow denied the allegations, calling them fabricated.

Metro operates 93 wholesale cash-and-carry stores across 51 regions in Russia and employs about 12,000 people there. In a statement on Monday, its Russian subsidiary did not directly address the decree but said it was operating as normal and meeting all obligations to shoppers at its retail outlets and online stores.

The step follows a similar move earlier in September, when the Kremlin transferred control of the Russian assets of Swiss food giant Nestle and French retailer Auchan, saying hostile actions by "unfriendly" countries had played a role in that decision.