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 However, some claims remain unpublished or classified, leaving the motivations of the Prosecutor General’s Office ambiguous.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

Fish
February 01, 2010

Fish

This mesmerizing novel from one of Russia’s most important modern authors traces the life journey of a selfless Russian everywoman. In the wake of the Soviet breakup, inexorable forces drag Vera across the breadth of the Russian empire. Facing a relentless onslaught of human and social trials, she swims against the current of life, countering adversity and pain with compassion and hope, in many ways personifying Mother Russia’s torment and resilience amid the Soviet disintegration.

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.

Little Golden Calf
February 01, 2010

Little Golden Calf

Our edition of The Little Golden Calf, one of the greatest Russian satires ever, is the first new translation of this classic novel in nearly fifty years. It is also the first unabridged, uncensored English translation ever, and is 100% true to the original 1931 serial publication in the Russian journal 30 Dnei. Anne O. Fisher’s translation is copiously annotated, and includes an introduction by Alexandra Ilf, the daughter of one of the book’s two co-authors.

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.

Marooned in Moscow
May 01, 2011

Marooned in Moscow

This gripping autobiography plays out against the backdrop of Russia's bloody Civil War, and was one of the first Western eyewitness accounts of life in post-revolutionary Russia. Marooned in Moscow provides a fascinating account of one woman's entry into war-torn Russia in early 1920, first-person impressions of many in the top Soviet leadership, and accounts of the author's increasingly dangerous work as a journalist and spy, to say nothing of her work on behalf of prisoners, her two arrests, and her eventual ten-month-long imprisonment, including in the infamous Lubyanka prison. It is a veritable encyclopedia of life in Russia in the early 1920s.

Russian Rules
November 16, 2011

Russian Rules

From the shores of the White Sea to Moscow and the Northern Caucasus, Russian Rules is a high-speed thriller based on actual events, terrifying possibilities, and some really stupid decisions.

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.

At the Circus
January 01, 2013

At the Circus

This wonderful novella by Alexander Kuprin tells the story of the wrestler Arbuzov and his battle against a renowned American wrestler. Rich in detail and characterization, At the Circus brims with excitement and life. You can smell the sawdust in the big top, see the vivid and colorful characters, sense the tension build as Arbuzov readies to face off against the American.

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