Vladimir Putin announced the possibility of nationalizing companies for national security purposes. The President of the Russian Federation made this statement during his speech at the congress of the Russian Union of Industrialists and Entrepreneurs, an association of large businesses in the country.
The Russian President said that the nationalization of some industrial enterprises does not mean a revision of the results of privatization. Putin clarified that this applies only to those cases where the actions or inactions of enterprise owners cause damage to the national security and interests of the country.
It is reported that a new wave of nationalization in Russia began against the backdrop of the war with Ukraine.
According to a study by Novaya Gazeta Europe and the Russian department of Transparency International, the number of nationalization claims in Russia in 2023 has increased almost five times compared to the period before the outbreak of hostilities.
During the two years of war, a record 40 claims were filed in the courts for the nationalization of more than 180 private companies. The total value of the assets of these companies at the beginning of March is estimated at approximately 1.04 trillion rubles, which is about 0.6% of Russia’s GDP.
Since the beginning of spring 2022, Russia has nationalized a number of significant enterprises. The nationalized facilities included the Solikamsk Magnesium Plant, a producer of rare earth metals; Ural Auto-Textile Plant and Friction and Heat-Resistant Materials Plant, which produce products for the military-industrial complex; Rostov Optical-Mechanical Plant; Pluto plant, electronics manufacturer; Metafrax, methanol producer; Chelyabinsk Metallurgical Plant, producer of ferroalloys; and Oilfield Production Services, an explosives manufacturer.
As part of nationalization, Russia also transferred into state ownership a number of enterprises not directly related to the military-industrial complex. Among them was Rolf, the largest car dealer, previously owned by Sergei Petrov, a former State Duma deputy and critic of the authorities. The state also took control of an agricultural concern and several energy enterprises.
In addition, the Russian Prosecutor General’s Office plans to nationalize the largest pasta manufacturer in the Russian Federation, Makfa.
Tags: Russia nationalizes business
