Putin orders forced administration over Metro assets in Russia

Background of the measure

Background of the measure

According to observers' estimates, Russia already controls assets of Western corporations worth several billion euros. Other retail companies such as Auchan, as well as energy and industrial groups, are also affected. Moscow justifies the interventions with references to alleged security risks or economic necessities.

Reactions from Berlin

For the MDax-listed Metro group, the forced administration means another severe blow. The Russia business was long one of the most profitable pillars of the Düsseldorf-based retailer. Even though Metro has been booking the consequences of the war in its balance sheets since 2023, the latest step is likely to further diminish future earnings from the former core market.

Reactions from Berlin

Impact on locations in Germany

The German federal government is observing the development with concern. The Ministry of Economic Affairs in Berlin said it was examining legal steps and coordinating with European partners. The question of possible countermeasures within the framework of already frozen Russian state assets is also back on the agenda.

Foreign Minister Sergei Lavrov had recently emphasized repeatedly that Russia would defend itself against Western sanctions. The forced administration over Western company assets is presented by the Kremlin as a legitimate instrument for securing its own economy. International legal experts, however, classify the measures as expropriation under the guise of state supervision.

Impact on locations in Germany

In addition to the economic consequences for Metro itself, locations in Germany could also be indirectly affected. Leipzig/Halle Airport, for example, is considered an important hub for goods traffic to Eastern Europe; an escalation of Russian measures could place additional strain on logistics chains. Industry insiders expect increased pressure on medium-sized suppliers.

It remains unclear whether Metro will take legal action against the forced administration. Comparable proceedings against the expropriations involving Carlsberg, Danone, or Fortum have already been ongoing internationally for years. Success before international arbitration tribunals is possible, but the actual enforcement of compensation in Russia is considered hopeless.