Ukraine labels German wholesaler Metro a ‘war sponsor’
German wholesaler Metro faces intense criticism from Ukraine’s NACP corruption watchdog and concerned citizens over its decision to continue business operations in Russia.
Justifying the addition of the wholesaler based in Dusseldorf, Germany, to its so-called list of international war sponsorsUkraine The NACP tweeted that Metro management has not stopped “funding Russian aggression” and that “major shareholder Daniel Kretinsky is closely linked to the oil, gas and banking sectors of the Russian economy”.
Kretinsky is a Czech oligarch who owns a 29.99% stake in METRO and also owns EPH, a Czech holding company that posted record profits in the first half of 2022 thanks to its large stake in the Russian gas business.
Metro CEO Steffen Greubel made statements defending the company’s decision to remain in Russia as early as the spring of last year. Now, more than a year since Russian forces crossed into Ukraine, the company appears firm in its decision to continue doing business there.
In a written statement provided to DW, a company spokesperson said: “Metro condemns the Russian invasion of Ukraine.”
They defended the company’s decision to maintain operations in Russia, saying: “We have decided, after careful internal review, to maintain operations of the Russian subsidiary, as the company is also responsible for the 10,000 colleagues there and many of our customers who buy food from us. . .”
In fiscal 2021/2022, Metro increased its sales in Russia to a total value of €2.9 billion ($3.9 billion).
More food companies on the NACP list
As of March 16, Metro is joined by 16 other entities in the NACP’s database of international war sponsors, which is monitored by the London Stock Exchange Group. Other consumer goods companies listed include US-based P&G (Proctor & Gamble) and France’s Auchan.
Research at the University of St. Gallen, Switzerland found that less than 9% of EU and G7 companies with subsidiaries in Russia left the country by November 2022. According to the study, most of the companies that remain are headquartered in Germany.
According to the NACP websiteMetro was touted as a war sponsor due to its ongoing partnership with Sberbank – which is majority owned by the Russian state – its development of a grocery chain franchise project in Russia called Fasol, and its acceptance of Mir payments.
Metro locations in Turkey accept Mir payments, a card payment system created by Russia’s central bank that was blocked in several countries after the US threatened to sanction entities that accept it last September.
A Metro spokesperson stated: “Since the outbreak of the war, no growth investments have been made in Russia beyond maintaining existing business operations, and we continue to watch developments closely.”
Ukrainian citizens offended by companies’ omission
Citing frustrations with the company’s choice to continue business in Russia, Taras Korpaniuk shared a video of himself writing “blood money” in red spray paint on the door of a subway exit in Ukraine.
For this act of vandalism, he was fined by the local police and has since made peace with the manager of that Metro store.
Korpaniuk is a co-founder of “Port Frankivsk”, a volunteer group named after a book about the city of Ivano-Frankivsk, Ukraine, which focuses on procuring supplies such as bulletproof vests and rifle scopes. rifle, and its delivery in strategic locations.
Asked why he was personally concerned about Metro’s business in Russia, Korpaniuk told DW: “The war has become a litmus test showing the inner workings of some companies.” He added that he admires companies that made the difficult decision to leave Russia last year, even if it meant a loss of revenue.
“It is a powerful sign to the [Russian] people,” he said, “because when companies go out of business, they understand that something is wrong. This makes life difficult and gives them one more reason to start questioning the dictatorship.”
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.