President Vladimir Putin signed a decree on Monday placing the Russian assets of German wholesaler Metro AG under the temporary management
of a company called UK Torg RUS. The move strips the German retailer of operational control over its Russian subsidiary amid escalating diplomatic tensions.
Metro AG maintains that it formally owns the company but no longer possesses operational control over its Russian subsidiary
, according to a company statement. The decree hands over control of a 100% stake in Metro Cash & Carry LLC, as well as Retail Property 5 LLC and Metro Warehouse Noginsk LLC, to the newly appointed manager.
UK Torg RUS and the Role of Johannes Tholey
The entity appointed to manage the assets, JSC UK Torg Rus, appears to have been created specifically for this transition. Corporate records indicate the firm was registered on Sept. 8, just three weeks before the decree was signed.
The sole owner of UK Torg Rus is Johannes Tholey, who has headed Metro Cash & Carry since 2023. While Metro’s Russian subsidiary stated it continues to operate as usual, the parent company in Germany is currently analyzing the further consequences of the decree
.
Financial Exposure and Russian Operations
The seizure affects a significant financial footprint. According to its latest yearly report, Metro’s sales in Russia reached 2.6 billion euros ($2.9 billion) during the 2024/2025 financial year. The company also reported cash and cash equivalents of 152 million euros ($172 million) as of June 30.
Metro employs 9,000 people in Russia and has been reducing its connections to the business since the 2022 invasion of Ukraine. This seizure follows a broader pattern where the Kremlin uses a 2023 decree to target businesses from unfriendly countries
—a label Russia applies to states supporting Ukraine or imposing sanctions.
A Pattern of Seizures: Nestlé, Auchan, and Lemana PRO
The move against Metro is not an isolated event. Earlier this month, the Kremlin placed several other major firms under the temporary management of L.E.V. Management. Management.
- Nestlé (Swiss food giant)
- Auchan (French retailer)
- Lemana PRO (formerly the French DIY chain Leroy Merlin)
- FM Logistic (French logistics operator)
These cases are particularly notable because Nestlé and Auchan had chosen to remain in Russia despite Western pressure to exit. This contradicts previous signals from the Kremlin; for instance, at the 2025 St. Petersburg International Economic Forum.
They have made an independent and responsible choice. And, of course, we respect that choice and will treat our partners with respect,
Vladimir Putin, President of Russia
Diplomatic Friction and the “Hybrid War”
The timing of the Metro seizure coincides with a sharp decline in German-Russian relations. Germany recently closed a Russian cultural center in Berlin and a consulate in Bonn after concluding that Russia was responsible for an attempted drone attack at Leipzig airport. Russia responded by closing the German consulate in St. Petersburg.
The seizure appears to be a tool of geopolitical pressure. Stefan Meister, a Russia expert at the German Council on Foreign Relations, suggests the move is intended to pressure the German government via its own business community, noting that Russia views Germany as a key adversary due to its support for Ukraine.
This friction was evident during a recent meeting between Russian Foreign Minister Sergey Lavrov and his German counterpart on the sidelines of the U.N. General Assembly. Lavrov later dismissed the encounter, claiming his counterpart simply reiterated his official public position condemning Russia… you can judge for yourself whether that counts as dialogue or not.
The Risk for Remaining Western Firms
For companies that stayed in Russia to avoid selling at a discount or to protect employees, the Metro and Nestlé cases signal that presence does not guarantee safety. The Kremlin’s temporary administration
has previously served as a precursor to local owners taking over businesses, such as the Danish brewer Carlsberg and French dairy firm Danone, at knockdown prices.
Beyond Metro, the Kremlin continues to reshape the environment for foreign business. In a separate decree, Putin authorized the sale of Western Union’s Russian subsidiary to a firm called Softeks LLC, though the sale price remains undisclosed.