Russia seizes Western retail assets

What's happened

Russian presidential decrees have placed the Russian operations of several Western retailers and food companies under temporary administration, transferring control to newly registered or Kremlin‑linked firms. The moves follow earlier 2023 seizures and are taking place as Moscow and Berlin exchange diplomatic and security accusations, putting German firms such as Metro and Globus at risk.

What's behind the headline?

Who is driving the moves

• The Kremlin is using a 2023 decree to transfer Western companies' Russian units into the hands of local managers or little‑known firms. The government is framing the steps as legal and temporary; in practice they have converted into de facto control.

What's behind the timing

• These actions are occurring while diplomatic ties with Germany are deteriorating: Berlin has accused Moscow of hostile actions, and Russia has responded with measures including consulate closures. The measures are increasing pressure on German companies that still operate in Russia.

Who benefits

• Kremlin‑linked firms and insiders will gain leverage and assets that Western owners have effectively abandoned or isolated. Local managers and newly registered entities such as L.E.V. Management and UK Torg Rus are positioned to take control and later facilitate transfers to friendly buyers.

Likely next steps

• Companies targeted will contest the moves through legal and diplomatic channels while operating units continue day‑to‑day activity under new administrators. Moscow will maintain control until it secures politically acceptable outcomes; many businesses will end up sold domestically at steep discounts.

Consequences for business and politics

• Western firms that remain will face higher political and operational risk. German and EU pressure on Russia will increase, and Moscow will use asset control as bargaining leverage in any discussions about frozen state funds or sanctions relief.

Bottom line

• The Kremlin is converting legal mechanisms into permanent influence over foreign assets. This will reduce the appetite of multinational firms to maintain any remaining exposure to Russia and will transfer economic value to domestic or Kremlin‑aligned actors.

How we got here

Since 2023 a Kremlin decree has allowed Moscow to place assets owned by companies from so‑called "unfriendly" countries under temporary administration. The measure followed Western sanctions after the 2022 invasion and has led to forced sales, discounted disposals and transfers to Russian managers or state‑linked firms.

Our analysis

The Moscow Times reports that Globus owner Hyperglobus has appointed former German chancellor Gerhard Schröder to support strategic development in Russia and to preserve a "dialogue‑oriented approach," a move Kommersant said is intended to shield the company from seizures. The Moscow Times also described the transfer of Metro Russia shares to a firm called UK Torg Rus, noting the CEO of Metro Russia is listed as Torg Rus's CEO. AP News and the Independent both published near‑identical accounts of President Vladimir Putin's decree placing multiple Western companies under temporary administration, noting the order did not give a reason and citing the 2023 law that enables such transfers. AP quoted Metro saying its Russian unit was formally its property but under local operational control and reported Metro employs about 9,000 people in Russia. Bloomberg provided registry details showing JSC UK Torg Rus was registered in Moscow this month with nominal capital and named Johannes Maria Tolay (reported elsewhere as Johannes Tholey) as CEO. Earlier coverage in The Moscow Times and France 24 described L.E.V. Management as a recently created entity with links to a former interior ministry general and listed the range of companies affected, including Nestlé, Auchan and Lemana Pro. Reuters‑style reporting in CNBC and Bloomberg noted Nestlé's statement that it is "assessing the situation" and will "take all necessary steps to protect its rights and ensure continuity of business operations," while analysts told CNBC they expect limited financial impact given Russia's reduced share of group sales. Together the sources show a consistent narrative: Kremlin decrees are moving Russian units into local hands, companies are maintaining operations under new administrators, and Moscow is framing seizures as temporary while preparing routes to domestic control.

Go deeper

• Will affected companies be able to regain legal control of their Russian units?
• Which Kremlin‑linked firms are most likely to end up owning these assets?
• How will Germany and the EU respond diplomatically or economically to these seizures?

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