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 However, some claims remain unpublished or classified, leaving the motivations of the Prosecutor General’s Office ambiguous.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

Some of our Books

Driving Down Russia's Spine
June 01, 2016

Driving Down Russia's Spine

The story of the epic Spine of Russia trip, intertwining fascinating subject profiles with digressions into historical and cultural themes relevant to understanding modern Russia. 

Faith & Humor
December 01, 2011

Faith & Humor

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.

The Latchkey Murders
July 01, 2015

The Latchkey Murders

Senior Lieutenant Pavel Matyushkin is back on the case in this prequel to the popular mystery Murder at the Dacha, in which a serial killer is on the loose in Khrushchev’s Moscow...

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.

 
93 Untranslatable Russian Words
December 01, 2008

93 Untranslatable Russian Words

Every language has concepts, ideas, words and idioms that are nearly impossible to translate into another language. This book looks at nearly 100 such Russian words and offers paths to their understanding and translation by way of examples from literature and everyday life. Difficult to translate words and concepts are introduced with dictionary definitions, then elucidated with citations from literature, speech and prose, helping the student of Russian comprehend the word/concept in context.

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.

Survival Russian
February 01, 2009

Survival Russian

Survival Russian is an intensely practical guide to conversational, colloquial and culture-rich Russian. It uses humor, current events and thematically-driven essays to deepen readers’ understanding of Russian language and culture. This enlarged Second Edition of Survival Russian includes over 90 essays and illuminates over 2000 invaluable Russian phrases and words.

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