Kremlin-seized Metro AG subsidiary donates 1 billion rubles to Russian military fund without parent approval

German retailer says it lost control of Russian arm after September decree

By LineZotpaper AI staff

Published23 October 2026

Read Time2 min

German wholesale food retailer Metro AG has announced that its Russian subsidiary, placed under Kremlin control last month, donated 1 billion rubles ($12.4 million) to a fund supporting Russian forces without the parent company's authorisation.

Metro AG said on 23 October that its Russian subsidiary had transferred the sum to the "People's Front. All for Victory!" fund, which it said would be used to purchase equipment for soldiers on the front lines. The donation came almost a month after Russian President Vladimir Putin signed a decree on 28 September placing the subsidiary under temporary state administration.

"The decision by Metro Russia to donate to the Russian organization 'All-Russia People's Front' was neither coordinated with Metro AG nor authorized or approved by Metro AG," the company said in a press release. "Since Metro Russia was placed under forced temporary administration as of September 28, Metro AG no longer has operational control over Metro Russia and has no influence over its operational decisions."

Metro AG entered the Russian market in 2001 and operated 91 wholesale stores with around 9,000 employees in the country. It is one of the world's largest retailers specialising in food wholesale and distribution to restaurants and hotels.

Moscow has seized Russian subsidiaries of other Western companies during its war in Ukraine. A decree on 17 September confiscated assets of Nestlé and Auchan, among others. Earlier in 2026, the People's Front fund received 1.5 billion rubles from Poland's Can-Pack, 1 billion rubles from Dutch firm Akzo Nobel, and 600 million rubles from Denmark's Rockwool after those companies were placed under Russian control.

Analysis

Why This Matters

The forced donation illustrates how Western companies that remain in Russia can be compelled to support the Russian military after being put under Kremlin administration.
The case raises legal and financial risks for international firms still operating in Russia, as seizure decrees strip parent companies of control over local assets.
The pattern of seizures and diversions of funds to military uses may escalate tensions between Russia and European governments, potentially prompting new sanctions or exit strategies.

Background

Since Russia's full-scale invasion of Ukraine, the Kremlin has tightened control over foreign-owned assets. A series of presidential decrees have placed subsidiaries of Western companies under temporary state management, often followed by donations to state-linked funds. Metro AG, which had continued operations in Russia after 2022, became the latest target in September 2026.

Key Perspectives

Metro AG: Says the donation was unauthorised and that it has no operational control over the Russian subsidiary since the forced administration began. Metro Russia (under Kremlin administration): Announced the donation in its own press release, stating the funds "will be used to purchase equipment needed by soldiers on the front lines."

What to Watch

Whether other Western companies with assets under Russian administration are forced to make similar donations.
Any response from the German government or the European Union, including potential legal action or expanded sanctions.
Metro AG's ability to write off or recover the lost value of its Russian subsidiary.

Sources

Kremlin-seized German company Metro AG transfers 1 billion rubles to Russian military without approval · Kyiv Independent

Checked

11 claims in this story checked against 1 source: 10 supported.

Show each claim

SupportedThe Kremlin-seized Metro AG subsidiary donated 1 billion rubles to a fund supporting Russian forces without its parent company’s approval.Kyiv Independent: “its Russian subsidiary had donated 1 billion rubles (11.1 million euros/ $12.4 million) to support Russian forces without the company's approval.”
SupportedMetro AG said it lost operational control of its Russian subsidiary after the September decree.Kyiv Independent: “Since Metro Russia was placed under forced temporary administration as of September 28, Metro AG no longer has operational control over Metro Russia and has no influence over its operational decisions.”
SupportedMetro AG announced on 23 October that its Russian subsidiary donated 1 billion rubles ($12.4 million) without the company's approval.Kyiv Independent: “German wholesale food retailer Metro AG announced on Oct. 23 that its Russian subsidiary had donated 1 billion rubles (11.1 million euros/ $12.4 million) to support Russian forces without the company's approval.”
Partly supportedMetro AG said the donation would be used to buy equipment for soldiers on the front lines.Kyiv Independent: “The funds “will be used to purchase equipment needed by soldiers on the front lines,” according to a press release from the Russian company.”
SupportedPutin signed a decree on 28 September placing Metro’s Russian subsidiary under temporary state administration, almost a month before the donation announcement.Kyiv Independent: “Almost one month after being placed under the Kremlin's control, German wholesale food retailer Metro AG announced on Oct. 23”
SupportedMetro AG said the donation decision was neither coordinated with nor authorised or approved by it.Kyiv Independent: ““The decision by Metro Russia to donate to the Russian organization “All-Russia People's Front” was neither coordinated with Metro AG nor authorized or approved by Metro AG,” the company said in a press release .”
SupportedMetro AG said it no longer had operational control over Metro Russia or influence over its operational decisions.Kyiv Independent: ““Since Metro Russia was placed under forced temporary administration as of September 28, Metro AG no longer has operational control over Metro Russia and has no influence over its operational decisions.””
SupportedMetro AG entered the Russian market in 2001 and operated 91 wholesale stores with around 9,000 employees there.Kyiv Independent: “Metro AG first entered the Russian market in 2001 and operated 91 wholesale stores, employing around 9,000 employees in the country.”
SupportedMetro AG is one of the world's largest retailers specialising in food wholesale and distribution to restaurants and hotels.Kyiv Independent: “Metro AG is one of the world’s largest retailers, specializing in food wholesale and food distribution to restaurants and hotels.”
SupportedA decree on 17 September confiscated assets of Nestlé and Auchan, among other companies.Kyiv Independent: “On Sept. 17, Putin signed a decree confiscating the assets of several international companies, including Nestle and Auchan .”
SupportedIn 2026, the fund received 1.5 billion rubles from Can-Pack, 1 billion from Akzo Nobel and 600 million from Rockwool after the companies were placed under Russian control.Kyiv Independent: “In 2026, the fund received 1.5 billion rubles from Poland's Can-Pack, 1 billion rubles from the Dutch firm Akzo Nobel, and 600 million rubles from Denmark's Rockwool after all companies were placed under Russian control.”