Russian Central Bank pushes back after state seizes UGC shares

Russian flag flies above Central Bank HQ during interest rate meeting, Moscow, Sept 12, 2025.
Reuters

Russia’s central bank has ruled the state violated minority shareholders’ rights in seized assets, signaling rare pushback against nationalisation.

The Russian central bank found that the government breached shareholder rights in some asset seizures linked to Moscow’s war in Ukraine. This marks the first significant pushback from parts of Russia’s elite against the nationalisation wave.

Tens of billions of dollars in assets owned by foreign and domestic investors have changed hands, often after being seized by the state. Market-friendly technocrats and business executives are voicing concerns about moves toward a Soviet-style command economy focused on the Ukraine conflict.

The central bank acted after the Moscow Stock Exchange complained about the state’s acquisition of a majority stake in gold miner UGC. While the seizure itself wasn’t challenged, authorities ruled the government failed to make a mandatory buyout offer to shareholders. The state property agency was instructed to execute the offer.

Investors warned that such actions undermine private property rights and deter market participation. About 10% of UGC shares are held by Russian retail investors, and the incident is raising doubts over future public offerings.

Officials are exploring accelerated sales of seized assets to shift buyout responsibilities, with copper producer UMMC emerging as a potential buyer for UGC’s stake. Central bank officials stressed that restoring investor confidence is crucial for Russia’s economic stability, even after the conflict ends.

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