Le Monde: German retailer Metro asks Kremlin to place its Russian assets under temporary management

German retail chain Metro itself asked Russian authorities to place it under temporary management, a source close to Moscow business circles told the French newspaper Le Monde.

The newspaper reported that Metro’s management believed Auchan, Nestlé, Lemana PRO (formerly Leroy Merlin), and FM Logistic had been caught off guard when Vladimir Putin placed them under external management by decree on September 17. Metro therefore decided to “act preemptively” to avoid the worst-case scenario.

“The German company itself asked the Kremlin to place it under ‘temporary management,’ hoping to retain more control over its fate. Metro’s CEO traveled to meet Putin’s economic adviser about the request. It’s a risky move. But there’s always a chance of reaching an amicable agreement — selling the business on more favorable terms. The only uncertainty is what the Kremlin might demand in return,” the source told Le Monde.

On September 28, Putin signed a decree placing Metro’s assets under temporary management. The company had remained in Russia after the start of Russia’s full-scale invasion of Ukraine. The joint-stock company UK Torg Rus was appointed temporary manager. It was registered on September 8, three weeks before Putin’s decree. Its sole owner is Johannes Tholey, who has headed Metro Cash & Carry (Metro’s Russian business) since 2023.

Placing the Russian assets of several major Western companies under temporary management is intended to make European countries “think about what measures they are taking and what sanctions they are introducing,” a senior Russian government source told Reuters. Asked which companies might be next, the source said, “Let them be scared.”