Russia has brought under state control some 180 companies, likely worth approximately $11.5 billion, since its full-scale invasion of Ukraine commenced in February 2022. Foreign-owned companies have almost certainly been prioritized, including companies owned by russians who live abroad. This is highly likely due to the state’s desire to reduce foreign (particularly Western) ties in the russian economy, the UK Defense Intelligence reports.
The russian state has been redistributing assets to Kremlin-aligned businesspeople who support the war in Ukraine. This de-privatisation is likely linked to russian President Vladimir Putin’s call in his State of the Nation address in February 2024 for a new nationalist elite forged by the war in Ukraine. Increased defense spending has almost certainly increased financial pressures on the russian state, alongside economic sanctions and flows of capital out of russia since the start of the invasion. The russian state is highly likely establishing greater control over companies in strategic industries, such as defense.
Read more: The UK Defense Intelligence: Analysis Shows a 9% Decrease in Reported russian Attacks Compared to February, with Notable Shifts in Strategic Areas
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