"We hope for a change in the market"

The Metro Group suffers from the tense relations between the West and Russia. But for CEO Olaf Koch the loss of confidence among local partners and employees is almost worse than measurable effects of the decline of the rouble.

Mr. Koch, Chancellor Merkel met President Putin in Moscow at the weekend. Is this a first sign of change?

The fact that discussions are maintained during the difficult phase is very positive. The biggest challenge for politics - and the economy - is to re-establish mutual trust. This weekend shows that this only works if you communicate with each other and call the tough issues by name.

How do you assess the political situation?

The situation is certainly tense. Therefore, we hope for a continued contact and compliance with the agreements and a change in the situation. The current political and economic situation affects not only companies that do business in the region; it touches the heart of the common European market. It is becoming increasingly clear how important close cooperation between the EU and Russia is.

How important is Russia for Metro?

Russia is the largest foreign market of the Metro Group, with a turnover of more than five billion Euro and around 24,000 employees. We have 80 cash carry wholesale supermarkets and since 2006 MediaMarkt operates 68 consumer electronics stores in the country.

Other companies prefer to completely back out or cut investments in Russia, but Metro opens new markets - why?

We are a trading company and therefore very close to the people and their everyday needs. And we have a great obligation to our employees in Russia. Trade is an extremely local business: In this country we have Russian customers, Russian employees and Russian suppliers.

Startled from the crisis, or if there is a "Now more than ever" mood?

Neither, we have built relationships with our customers in Russia, a close and trusting relationship and it is our goal that we keep earning their trust and be there for our local customers. As a professional partner we make sure that the products are available and we work hard to keep prices as stable as possible.

What does the crisis, especially the decline of the Russian rouble, mean for the business?

It is clear that the effect of exchange rates are felt in the conversion to Euro and thus in our financial results. In the first half of the year 2014/15 the negative effects of the exchange rate cost approximately 90 million Euro. However in local currency terms - i.e. in roubles - we are still very satisfied.

Source: www.handelsblatt.com