Putin Signs Moscow’s New Excuse To Seize Businesses

Vladimir Putin signed a decree Monday allowing the Russian state to take temporary control of critical infrastructure deemed too poorly protected from Ukrainian drone attacks, including the right to take over an owner’s real estate, securities, and other property.

The decree covers energy and fuel operations (including nuclear power), manufacturing, telecoms, transport, logistics networks, and utilities, plus any other site the Kremlin classifies as vital to national security or the economy. An owner can trigger temporary management by failing to secure a facility, violating security rules, creating a security risk through ineffective anti-drone measures, or delaying repairs after an attack.

The decree names Rosimushchestvo, the federal agency that manages state property, as the default administrator, though the government can designate a different body. Whoever takes over a facility would cover its costs using the money the property itself brings in.

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The measure does give the state power over an owner’s “formal ownership rights,” but First Deputy Prime Minister Denis Manturov pushed back on the idea that it amounts to seizure. “This does not involve nationalisation or a change of ownership,” he told Interfax, describing it instead as the state stepping in to manage specific security problems at a facility.

Ukrainian drones have hit more than 20 Wildberries warehouses since July 18, wiping out a large share of Russia’s top online retailer’s storage space, while Ozon, the country’s second-biggest retailer, reported four of its southern distribution hubs struck this week. 

Read: Ukraine drone strikes target Russian retail logistics, kill 5 

Hours after Putin’s decree, drone strikes knocked the Perm oil refinery offline too, and it isn’t expected back online for up to two weeks.

Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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