Russia seizes assets worth $50 BN in three-year ‘fortress’ push

Russia has confiscated 3.9 trillion roubles (about $50 billion) in company assets since 2022, signalling a decisive shift towards a 'fortress Russia' economic model, the Kommersant business daily reported on Wednesday.

The tally, compiled by Moscow-based NSP Law Firm, shows the state has targeted both foreign-owned operations and domestic businesses, citing strategic security and economic stability.

Around 1.54 trillion roubles (about $20 billion) were taken under Russia’s law on strategic enterprises, while 1.07 trillion roubles (about $14 billion) were seized on corruption grounds, Kommersant said.

A further 621.5 billion roubles (about $8 billion) were confiscated for alleged mismanagement and 385 billion roubles (about $5 billion) for supposed privatisation violations.

NSP advised owners to cut “weak points” that could justify state intervention, such as second passports or commercial links with states Russia deems “unfriendly” — essentially most Western nations — and to consider partnering with state-controlled firms.

Russia’s economy, worth about $2.2 trillion in 2024 by International Monetary Fund estimates, has withstood Western sanctions better than many analysts predicted, buoyed by defence spending and energy revenues. Critics warn, however, that sweeping state takeovers could deter capital and stifle private enterprise.

Kommersant noted that hopes for an open, market-driven Russia after the Soviet collapse have been steadily eroded. President Vladimir Putin’s early embrace of business liberalisation gave way to tighter state control following the 2014 annexation of Crimea and the subsequent waves of sanctions.

The Kremlin has not commented on the latest figures, but officials say asset nationalisation is necessary to protect national interests.

Business lobbies in Moscow declined immediate comment.

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