March 14, 2024

Nationalize It


Nationalize It
Industry in Russia. Alt-n-Anela, Wikimedia Commmons

A study conducted by Novaya Gazeta Evropa and Transparency International Russia reveals that, since the onset of Russia's War on Ukraine, Russian courts have received an unprecedented 40 demands for the nationalization of more than 180 private companies. The total assets of these companies amount to approximately 0.6% of Russian GDP.

The most commonly nationalized enterprises are those in the military-industrial complex, mechanical engineering, food, and fishing industries, as well as ports and real estate.

Ilya Shumanov, general director of Transparency International Russia, said that the state's interest in the defense sector stems from its need to control enterprises supporting the war. Additionally, real estate and land, particularly in key regions such as Moscow, the Moscow region, St. Petersburg, and the southern regions, are targeted due to their high value. In the fishing sector, nationalization serves to acquire fishing quotas.

Part of the privatization process entails accusing business owners of illegally possessing property and violating anti-corruption laws. In some instances, prosecutors seek to nullify transactions or business formations, citing violations of Russian Federation laws. However, some claims remain unpublished or classified, leaving the motivations of the Prosecutor General’s Office ambiguous.

There have also been cases where enterprises were nationalized following allegations of financing the Armed Forces of Ukraine by the companies' owners. For instance, the Investigative Committee of Russia demanded the seizure of assets belonging to Metinvest Eurasia, controlled by Ukrainian billionaire Rinat Akhmetov, citing funds that were transferred to the First International Ukrainian Bank.

Although cases of nationalization occurred sporadically in Russia before this surge, they were much less frequent. Throughout the 2010s, there were few claims for nationalization, and in 2020 and 2021, the Prosecutor General’s Office filed only three claims per year. The ongoing conflict has expedited the nationalization process, with claims being processed swiftly, sometimes within a month.

Ilya Shumanov highlighted three key features of this wave of nationalization. First, the Prosecutor General’s Office targets "risk groups," meaning individuals with dual citizenship, owners of offshore companies, and Russians residing abroad. Second, the FSB is clearly involved in nationalization cases, with its personnel and materials surfacing in multiple trials. Finally, the privatization wave is the consolidating core economic assets into fewer hands.

Shumanov identifies signs of consolidation in sectors such as the chemical industry, machine tool manufacturing, defense enterprises, ports, and the fishing industry. For instance, in the chemical industry, a significant portion of assets are now managed by the Roschim group, associated with the Rotenberg brothers, close allies of Russian President Vladimir Putin.

You Might Also Like

Migrant Flow Slows to Trickle
  • February 25, 2024

Migrant Flow Slows to Trickle

Immigration into Russia from Central Asian countries has slowed since the start of Russia's War on Ukraine.
Occupation Is Expensive
  • December 03, 2023

Occupation Is Expensive

An independent Russian news outlet reported that Russia is worse off economically because of its actions in Ukraine since 2013.
Like this post? Get a weekly email digest + member-only deals
[INVALID]
[INVALID]

Some of our Books

White Magic
June 01, 2021

White Magic

The thirteen tales in this volume – all written by Russian émigrés, writers who fled their native country in the early twentieth century – contain a fair dose of magic and mysticism, of terror and the supernatural. There are Petersburg revenants, grief-stricken avengers, Lithuanian vampires, flying skeletons, murders and duels, and even a ghostly Edgar Allen Poe.

How Russia Got That Way
September 20, 2025

How Russia Got That Way

A fast-paced crash course in Russian history, from Norsemen to Navalny, that explores the ways the Kremlin uses history to achieve its ends.

Murder and the Muse
December 12, 2016

Murder and the Muse

KGB Chief Andropov has tapped Matyushkin to solve a brazen jewel heist from Picasso’s wife at the posh Metropole Hotel. But when the case bleeds over into murder, machinations, and international intrigue, not everyone is eager to see where the clues might lead.

The Pet Hawk of the House of Abbas
October 01, 2013

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.

 
Jews in Service to the Tsar
October 09, 2011

Jews in Service to the Tsar

Benjamin Disraeli advised, “Read no history: nothing but biography, for that is life without theory.” With Jews in Service to the Tsar, Lev Berdnikov offers us 28 biographies spanning five centuries of Russian Jewish history, and each portrait opens a new window onto the history of Eastern Europe’s Jews, illuminating dark corners and challenging widely-held conceptions about the role of Jews in Russian history.

Life Stories
September 01, 2009

Life Stories

The Life Stories collection is a nice introduction to contemporary Russian fiction: many of the 19 authors featured here have won major Russian literary prizes and/or become bestsellers. These are life-affirming stories of love, family, hope, rebirth, mystery and imagination, masterfully translated by some of the best Russian-English translators working today. The selections reassert the power of Russian literature to affect readers of all cultures in profound and lasting ways. Best of all, 100% of the profits from the sale of this book are going to benefit Russian hospice—not-for-profit care for fellow human beings who are nearing the end of their own life stories.

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955