Metro will continue to invest in Russia .. if it can
German retailer Metro has announced that it will continue to invest in Russia provided that sanctions do not effect the ability of the company to import goods.
Metro Chief Executive Olaf Koch said in a CNBC interview that Russia and Ukraine were still good markets for Metro. In Russia, Metro is the fourth largest retailer behind X5 , Magnit and Auchan. Russia provided last year one quarter of Metro’s operating profit in 2013 and sales of nine percent. Turnover is around EUR4bn in the country.
However recent political events meant that the company had to put on hold an IPO in Russia which it had hoped would bring in EUR1bn. Koch said Metro had enough funds to invest in Russia in 2014 and 2015, but would need to look at finding alternative funding after that.
The share price of the company took a serious knock after the crisis in Ukraine began. So far this year, it has fallen by 19 percent.
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