Russian President Vladimir Putin placed the local operations of German grocer Metro Cash and Carry under temporary government administration on Monday, September 28, 2026. This action forms part of a broader Kremlin effort targeting major Western corporate assets across the country, following similar moves against Swiss food giant Nestlé and French retailer Auchan.
According to the official order published Monday, Metro’s Russian stores and property holdings will fall under the management of JSC UK Torg Rus. Russian corporate registry data indicates that the managing entity was established in Moscow this month with a charter capital of 10,000 rubles ($118). Johannes Maria Tolay, who serves as chief executive officer of Metro’s Russian unit, was listed as chief executive of the new entity. In a separate decision, the Russian government permitted Western Union to divest its assets within the country.
The move against Metro followed temporary nationalization orders targeting Nestlé and Auchan. Russian authorities stripped both firms of their existing management structures, placing them under the temporary control of a shell entity identified as L.E.V. Management. Industry analysts warn that such temporary administration arrangements frequently precede permanent confiscation or nationalization.
Escalation Against Western Businesses
The campaign against foreign-owned companies has intensified steadily since the 2022 invasion of Ukraine. Under a 2023 presidential decree signed by Putin, Moscow holds the legal authority to seize assets from nations deemed “unfriendly” and place them under temporary state administration. Kremlin spokesman Dmitry Peskov defended the latest actions, pointing to European involvement in military support for Ukraine.
“We are talking about European companies from unfriendly countries,” Peskov told reporters following the initial decrees in September, noting that these states are actively involved in supporting Ukraine. While Switzerland does not supply weapons, Moscow has criticized the country for adopting European Union sanctions.
Swiss authorities expressed concern over the seizure of Nestlé’s assets and confirmed they are supporting the company in efforts to reverse the decision. Nestlé, which operates six factories in Russia producing coffee, pet care, and infant formula, stated that it is assessing the situation and exploring all options to protect its legal rights and employees.
Impact on Global Retail Giants
The scale of the corporate sweep impacts some of Europe’s largest household brands. Auchan operates approximately 230 stores and an online retail business in Russia, employing around 30,000 people. Other firms ensnared in the decree include French logistics group FM Logistic and Lemana Pro, the former Leroy Merlin DIY home improvement chain.
Market analysts note that while the affected companies face severe operational hurdles, the financial blow to parent corporations may remain limited due to prior scaling-back of operations:
- Nestlé: Russia accounts for roughly 1% to 2% of total group sales, down from pre-war levels.
- Auchan: Manages a massive footprint of 230 local hypermarkets and supermarkets.
- Metro Cash and Carry: Major wholesale and retail operations now overseen by JSC UK Torg Rus.
Precedents and Future Outlook
Legal experts and financial analysts point to prior actions involving foreign companies as an indicator of potential long-term outcomes. In 2023, Moscow seized control of French dairy producer Danone’s Russian business and Danish brewer Carlsberg’s local operations. Danone’s assets were later cleared for sale to a pro-war Russian businessman at a steep discount, while Carlsberg ultimately exited through a management buyout.
Observers from financial institutions, including Kepler Cheuvreux and Barclays, suggest that affected companies like Nestlé and Metro are unlikely to receive fair compensation, with assets effectively permanently lost to the state or transferred to Kremlin-aligned domestic buyers.
